Please use symbol entry at top right of page to search

Japan's super-long yields higher after hawkish Fed comments

SINGAPORE, Nov 29 (Reuters) - Yields on longer-dated Japanese government bonds (JGBs) rose for a third straight session on Tuesday to hit almost three-week highs after hawkish comments from the U.S. Federal Reserve officials put bond markets globally on the back foot.

The 20-year JGB yield rose 2 basis points (bps) to 1.120%, while the 30-year JGB yield rose 2.5 bps to 1.510%, the highest levels since Nov. 10.

Overnight Richmond Federal Reserve Bank President Thomas Barkin was the latest official to quell speculation the U.S. central bank would reverse course on interest rates relatively quickly next year.

Also weighing on JGBs was the scorching hot inflation data from Tokyo last week that has put pressure on the Bank of Japan, which has been an outlier among global central banks by sticking with monetary stimulus, to shift its policy.

Ten-year yields were untraded since Friday, when they hit the BOJ's 0.25% ceiling.

The rise in Japan's consumer price index is set to become a leap, Mizuho Securities analysts said in a note.

"A number of data points appearing in late November have made this conclusion inevitable. That makes it likely that the BOJ's core CPI forecast will be revised higher (for FY23 in particular) when the next outlook report is published in January."

The five-year yield rose 1.5 bps to 0.110%. Benchmark 10-year JGB futures fell 31 ticks to 148.71. (Reporting by Ankur Banerjee; Editing by Janane Venkatraman)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Search News

Filter Results

Publication Date
  • All

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.