JGB bond yields rise:Japanese government bond (JGB) yields saw a modest rise on Thursday, with the market remaining calm as market participants anticipated key comments from the heads of the Bank of Japan (BOJ) and the Federal Reserve on Friday.
Medium- and long-term Japanese government bond yields rose slightly as market players adjusted their positions amid easing concerns about a U.S. recession. The remaining movement was cautious ahead of Bank of Japan Governor Kazuo Ueda’s appearance before the Japanese parliament, where he could discuss the central bank’s decision to raise rates last month.
At 0415 GMT, Japan’s benchmark 10-year bond yield was up 0.5 basis point at 0.87 percent. Japan’s 10-year bond futures were down 0.14 yen at 144.84 yen. Analysts would like to see whether Governor Ueda would change his hawkish stance given recent market volatility. A market analyst at Mizuho Securities said there was strong uncertainty surrounding that and it was difficult to make a move.
The BOJ’s recent hawkish stance was also linked to a huge drop in Japanese stocks, the biggest single-day drop since the Black Monday crash of 1987. The same analyst noted that some institutional investors were now eyeing another rate hike this year, after the BOJ published research papers anticipating that rising inflationary pressures could also continue to require continued rate increases.
On the world stage, US Federal Reserve Chairman Jerome Powell will speak at the Jacks Hole Economic Symposium on Friday, and the market is looking at the possibility of the Fed cutting rates in September. The market will be watching for Powell’s comments on the size of a potential cut and the outlook for monetary policy.
In other yield moves, the 2-year Japanese bond yield (JP2YTN=JBTC) rose 1.5 basis points to 0.36 percent. The 5-year yield (JP5YTN=JBTC) rose 1 basis point to 0.485 percent, while the 20-year (JP20YTN=JBTC) and 30-year Japanese bond yields (JP30YTN=JBTC) remained unchanged at 1.7 percent and 2.08 percent, respectively.
(With contributions from Reuters.)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.