Japan 10-year bond yield hits near 3-week high as financial system worries ease

JAPAN’S 10-year government bond (JGB) yield rose to a near three-week high on Friday (Mar 31), with investors selling save-haven debt as global financial worries subsided.

The 10-year JGB yield rose 1 basis point (bp) to 0.325 per cent, its highest level since March 13.

The 20-year JGB yield rose 1 bp to 0.995 per cent and the 30-year JGB yield rose 1 bp to 1.220 per cent.

“JGB yields were in demand for the fiscal year-end so their yields were on downward trend even as their overseas peers rose as worries about the financial system eased,” said Kazuhiko Sano, chief fixed income strategist at Tokai Tokyo Securities.

“JGB yields finally caught up the move of overseas yields on the last day of the fiscal year.”

Market participants eye details on the BOJ’s bond purchase plans for three months from April to be announced later in the session. Some strategists expect the BOJ will reduce the amounts across tenors amid a global rally in bonds.

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The 40-year JGB yield rose 1 basis point to 1.430 per cent.

The two-year JGB yield rose 0.5 bp to -0.055 per cent.

The five-year yield rose 0.5 bp to 0.090 per cent. REUTERS