Bond futures extended their losses in afternoon trading, approaching levels around 3.75%, a benchmark for long-term government bond yields. Selling dominated the domestic market in response to developments in the U.S. market.
Bond futures extended their losses in afternoon trading. The benchmark long-term Japanese government bond futures contract, maturing in December 2026, closed 90 sen below the previous weekend at ¥124.41.
The yield on the latest 10-year Japanese government bond, a benchmark for long-term interest rates, rose 0.100 percentage point to 3.075%, its highest level in about 30 years. Cash bond yields rose to 1.90% for 2-year bonds, 2.380% for 5-year bonds, 3.920% for 20-year bonds and 4.160% for 30-year bonds.
The Tokyo market opened sharply lower, following the trend in the U.S. market, and selling spread through the afternoon. Market participants said expectations for domestic interest-rate hikes were likely to be constrained by political factors, contributing to the dominance of selling.