Japan's JGB Yields Near Multi-Decade Highs Ahead of 40-Year Auction
The Japanese government bond (JGB) market remained under pressure on Tuesday as yields held near multi-decade highs. The benchmark 10-year JGB yield rose 0.5 basis points to 3.090%, just shy of the 30-year high of 3.115% reached last week.
Global bond markets were affected by rising US Treasury yields, driven by inflation fears linked to surging oil prices and expectations of further Federal Reserve rate hikes.
The Ministry of Finance will sell approximately 300 billion yen ($1.91 billion) of 40-year JGBs later in the session, followed by an auction of 2-year notes on Wednesday.
According to Takayuki Miyajima, senior economist at Sony Financial Group, yields on newly issued 40-year bonds are near record highs and some demand is expected from life and non-life insurance companies, as well as foreign investors.