Japanese bonds yields rise in step with US peers after blowout jobs report

Meanwhile, a weaker yen prompted investors to reassess chances of another rate hike from the Bank of Japan (BOJ) this year, contributing to the rise in JGB yields, said Naka Matsuzawa, chief macro strategist at Nomura Securities.

 

Bets for further rate hikes this year receded last week after new Prime Minister Shigeru Ishiba said Japan is not ready for an additional rate increase.

 

The U.S. dollar rallied following the jobs report, sending the yen down to its lowest level since mid-August on Monday. The yen was last hovering around 148.54 per dollar.

 

If the Japanese government becomes concerned with the yen’s depreciation and begins to jawbone, “that definitely raises the chance of a BOJ rate hike earlier,” said Matsuzawa.

 

Japan has conducted a series of interventions this year, selling the dollar to buy yen to prop up the battered currency.

The last one was in late July after the yen fell to a 38-year low below 161 per dollar. The weakness in turn put pressure on the BOJ to raise rates.

 

The 20-year JGB yield climbed 3.5 bps to 1.69 per cent, its highest since Sept. 20.

The 30-year JGB yield edged up 2.5 bps to 2.1 per cent.

 

The five-year yield jumped 4 bps to a one-month peak of 0.53 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Oct 07 2024 | 12:04 PM IST