Long-term yields rose further in the domestic bond market on the afternoon of the 25th, with the benchmark new-issue 10-year JGB yield climbing to 2.890%. The rise in domestic yields spread amid a pause in the decline in US long-term yields.
In the domestic bond market on the afternoon of the 25th, long-term yields extended their gains, with the benchmark new-issue 10-year JGB yield rising 0.010 percentage points from the previous day to 2.890%. The yield moved higher from the 2.885% level reached in the morning, as movements in US long-term yields also affected domestic yields.
Selling spread to the super-long-term segment in the cash bond market. The yield on the new-issue 30-year JGB rose 0.010 percentage points from the previous day to 4.065%, while the yield on the new-issue 40-year JGB also rose. Higher oil prices and concerns about fiscal expansion were cited as factors supporting the rise in yields.
Market participants increasingly expect uncertainty over US Federal Reserve monetary policy and concerns about widening US fiscal deficits to influence long-term yields in both the US and Japan. With expectations of a policy change by the Bank of Japan still simmering domestically, the next focus is whether long-term yields will reach the 3% range.
Related developments being closely watched include whether US economic data, oil price movements and concerns about increased government bond issuance will weigh on the market.