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Published 11:24 IST, April 22nd 2024

Japanese Government Bond Yields Rise as Middle East Tensions Ease

Following a sharp decline in yields on safe-haven bids last Friday, JGB yields rebounded across the curve.

Reported by: Business Desk
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Japanese Govt Yield Rise: JGB yields saw an uptick on Monday as concerns over a potential escalation in the Middle East conflict eased. Iran's measured response to an Israeli drone attack last week, indicating no plans for retaliation, contributed to the market's reassurance.

Following a sharp decline in yields on safe-haven bids last Friday, JGB yields rebounded across the curve. The 10-year JGB yield rose by 5 basis points to 0.880%, recovering from a one-week low of 0.825 per cent.

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Meanwhile, attention is turning to the Bank of Japan's (BOJ) upcoming April meeting. BOJ Governor Kazuo Ueda's remarks on Friday hinted at a potential interest rate hike if underlying inflation continues to rise. Ueda also indicated the possibility of reducing the central bank's bond-buying program in the future.

While Ueda's comments reinforced expectations for future rate hikes, market sentiment was primarily influenced by easing geopolitical tensions rather than BOJ remarks. Analysts noted that the chance of a rate hike in July was increasing, although market consensus still leans towards an October hike.

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In terms of yield movement, the two-year JGB yield climbed by 2 basis points to 0.275 per cent, while the five-year yield saw an increase of 3.5 basis points to 0.485 per cent. On the longer end, the 30-year JGB yield rose by 4 basis points to 1.920 per cent.

With Japanese Govt

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11:24 IST, April 22nd 2024