Japanese Government Bonds Decline in Tandem with U.S. Treasury Losses

Deep News05-12 08:39

Japanese government bonds fell during the morning session in the Tokyo market, following the overnight decline in U.S. Treasury prices. Japanese and U.S. government bonds often move in sync. Japan's Ministry of Finance is scheduled to auction approximately 2.6 trillion yen worth of 10-year sovereign securities on Tuesday.

Tomohisa Fujiki of Citigroup Investment Research stated in a research report, "Due to rising stock prices, we anticipate pension funds will generate buying demand for rebalancing purposes." The interest rate strategist added, however, that "the yen has appreciated due to foreign exchange intervention, which will marginally reduce demand for yen-denominated bonds."

The yield on the 10-year Japanese government bond rose by 2 basis points to 2.540%, reaching its highest intraday level since June 1997.

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