Japanese Yields Rise as Investors Track Higher US Treasury Yields

Japanese government bond yields rose on Thursday as investors tracked higher US Treasury yields overnight. The benchmark 10-year JGB yield climbed 5 basis points to 3.11%, while the 20-year JGB yield increased by 4.5 basis points to 3.945%. The 30-year JGB yield added 6 basis points to 4.2%.

The US Treasury yields rose despite a softer Personal Consumption Expenditures price index reading for August, which tempered expectations for a Federal Reserve rate hike this month. However, revised gross domestic product data and ADP job data highlighted resilience in the US economy, contributing to higher yields.

Japanese business confidence hit an eight-year high over July-September amid elevated inflation expectations, according to a quarterly Bank of Japan Tankan survey. This bolstered the case for interest rate hikes, which was further supported by opinions from the BOJ's September meeting.