Japan Bond Yields Rebound Amid BOJ Rate Hike Bets

Japanese government bond yields rose on Monday as investors focused on an upcoming five-year bond auction and reassessed the outlook for Bank of Japan interest-rate hikes.

The 20-year JGB yield climbed 3.5 basis points to 3.74%, while the 30-year yield rose 4.5 basis points to 4.01%. The benchmark 10-year JGB yield increased 2.5 basis points to 2.93%.

Market participants were cautious ahead of the five-year JGB auction, with demand at the sale expected to provide clues about investor appetite for Japanese government debt.

The two-year JGB yield rose 1.5 basis points to 1.84%, while the five-year yield gained 2 basis points to 2.245%.