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Business Times
15-07-2025
- Business
- Business Times
Japan's 30-year bond yield hits record high ahead of key election
[TOKYO] Japan's 30-year government bond fell on Tuesday (Jul 15), with the yield hitting a record high, on concerns about the nation's fiscal health ahead of a closely monitored national election at the end of this week. The 30-year JGB yield touched an all-time high of 3.195 per cent, before easing to 3.18 per cent, up 2.5 basis points (bps) from the previous session. Yields move inversely to prices. The market weighed the risk of the defeat of the Liberal Democratic Party and its coalition partner Komeito at the upcoming upper house election on July 20. A potential defeat could empower opposition parties that have pledged in their campaign platforms to cut or abolish the sales tax. The 20-year JGB yield rose to as high as 2.64 per cent, its highest since November 1999, the 10-year JGB yield rose to as high as 1.595 per cent, its highest level since October 2008. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up If the LDP-led coalition loses the majority, the 10-year bond yield could rise to as high as 1.8 per cent, the highest level since mid-2008, said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management. 'This indicates how the fiscal health has worsened and prices have risen since then,' Inadome said. 'Now the Bank of Japan owns about half of the JGBs and that has capped the yields from rising further. Back then, the BOJ's ownership was much smaller.' Local media reported that Japan's ruling coalition was struggling in the election campaign and could lose its majority. Prime Minister Shigeru Ishiba's administration has seen approval ratings slide as the rising cost of living, including the soaring price of Japan's staple rice, hit households. Yields on shorter-dated bonds rose to their highest levels since early April, with the two-year JGB yield rising 1 bp to 0.785 per cent and the five-year yield climbing 1 bp to 1.080 per cent. REUTERS
Business Recorder
15-07-2025
- Business
- Business Recorder
Japan's 30-year bond yield hits record high ahead of key election
TOKYO: Japan's 30-year government bond fell on Tuesday, with the yield hitting a record high, on concerns about the nation's fiscal health ahead of a closely monitored national election at the end of this week. The 30-year JGB yield touched an all-time high of 3.195%, before easing to 3.18%, up 2.5 basis points (bps) from the previous session. Yields move inversely to prices. The market weighed the risk of the defeat of the Liberal Democratic Party and its coalition partner Komeito at the upcoming upper house election on July 20. A potential defeat could empower opposition parties that have pledged in their campaign platforms to cut or abolish the sales tax. The 20-year JGB yield rose to as high as 2.64%, its highest since November 1999, the 10-year JGB yield rose to as high as 1.595%, its highest level since October 2008. If the LDP-led coalition loses the majority, the 10-year bond yield could rise to as high as 1.8%, the highest level since mid-2008, said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management. 'This indicates how the fiscal health has worsened and prices have risen since then,' Inadome said. 'Now the Bank of Japan owns about half of the JGBs and that has capped the yields from rising further. Back then, the BOJ's ownership was much smaller.' Local media reported that Japan's ruling coalition was struggling in the election campaign and could lose its majority. Prime Minister Shigeru Ishiba's administration has seen approval ratings slide as the rising cost of living, including the soaring price of Japan's staple rice, hit households. Yields on shorter-dated bonds rose to their highest levels since early April, with the two-year JGB yield rising 1 bp to 0.785% and the five-year yield climbing 1 bp to 1.080%.
Zawya
06-03-2025
- Business
- Zawya
Japan's 10-year bond yield hits nearly 16-year high after sell-off in German bonds
Japan's 10-year government bond yield hit a nearly 16-year high on Thursday after a sharp sell-off in German bonds weighed on sentiment. The 10-year JGB yield jumped 6.5 basis points (bps) to 1.505%, its highest level since June 2009. The yield posted its biggest daily rises since the market turmoil in August last year. "The 10-year JGB yield rose to above 1.4% on expectations that the Bank of Japan would raise interest rates further. Today it got an additional boost from the sell-off of German bonds," said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management. A major overhaul to German government borrowing triggered the biggest sell-off in the country's debt since the late 1990s. The country's 10-year Bund futures fell 0.7% on Thursday, indicating a likely decline in cash bond prices later. On Wednesday, the euro zone's benchmark 10-year yield climbed 30 basis points. "The JGB yields may fall going forward because there will be some market-moving cues this week. If U.S. jobs data is weak, the yields may take a different course," Inadome said, adding that the market awaits the outcome of the European Central Bank meeting later in the day. JGB yields in other maturities also hit their new multi-year highs. The two-year JGB yield rose 2 bps to 0.85% and the five-year JGB yield rose 5.5 bps to 1.125%, their highest since October 2008. The 20-year bond yield rose to as high as 2.195%, its highest since June 2009. The 30-year bond yield jumped 9 bps to 2.495%, its highest since June 2008. The 40-year bond yield rose 1 bp to 2.845%. (Reporting by Junko Fujita; Editing by Rashmi Aich and Janane Venkatraman)
