Latest news with #KatsutoshiInadome
Business Recorder
4 days ago
- Business
- Business Recorder
JGBs fall after weakest auction in 5 years spurs sell-off
TOKYO: Japanese government bonds dropped on Wednesday after a five-year bond auction drew the weakest demand in more than five years, triggering a wave of selling by investors. The five-year yield rose 3 basis points (bps) to 1.070%. The 10-year JGB yield rose 2.5 bps to 1.525%. Yields move inversely to bond prices. The lacklustre auction followed a session in which the 10-year JGBs untraded all day, reflecting thin liquidity during Japan's 'Obon' holiday season. 'The market was worried about the liquidity and hesitated to participate in the auction,' said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management. The auction received bids worth 2.96 times the amount sold, the lowest ratio since March 2020, and lower than a ratio of 3.54 times at the previous auction in July. The level of the five-year bond yield was not high enough, so that the market was afraid to buy bonds in case the yield rises in the coming sessions, said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities. JGB yields have eased from their highs in July as expectations of a rate hike by the Bank of Japan receded, following the central bank's caution over persistent risks to the economic outlook. The two-year JGB yield rose 1.5 bps to 0.785%. Yields on longer-dated bonds fell, with 20-year JGB yield slipping 0.5 bp to 2.515%. The 30-year JGB yield fell 0.5 bp to 3.085%. The 40-year JGB yield fell 1.5 basis points to 3.285%. Reuters
Mint
4 days ago
- Business
- Mint
JGBs fall after weakest auction in 5 years spurs sell-off
TOKYO, Aug 13 (Reuters) - Japanese government bonds dropped on Wednesday after a five-year bond auction drew the weakest demand in more than five years, triggering a wave of selling by investors. The five-year yield rose 3 basis points (bps) to 1.070%. The 10-year JGB yield rose 2.5 bps to 1.525%. Yields move inversely to bond prices. The lacklustre auction followed a session in which the 10-year JGBs untraded all day, reflecting thin liquidity during Japan's "Obon" holiday season. "The market was worried about the liquidity and hesitated to participate in the auction," said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management. The auction received bids worth 2.96 times the amount sold, the lowest ratio since March 2020, and lower than a ratio of 3.54 times at the previous auction in July. The level of the five-year bond yield was not high enough, so that the market was afraid to buy bonds in case the yield rises in the coming sessions, said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities. JGB yields have eased from their highs in July as expectations of a rate hike by the Bank of Japan receded, following the central bank's caution over persistent risks to the economic outlook. The two-year JGB yield rose 1.5 bps to 0.785%. Yields on longer-dated bonds fell, with 20-year JGB yield slipping 0.5 bp to 2.515%. The 30-year JGB yield fell 0.5 bp to 3.085%. The 40-year JGB yield fell 1.5 basis points to 3.285%. (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)
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
Economic Times
15-07-2025
- Business
- Economic Times
Japan's 30-year bond yield hits record high ahead of key election
Japanese government bonds plummeted, with the 30-year yield reaching a record high amid fiscal health concerns ahead of national elections. Synopsis Japanese government bond yields surged, with the 30-year yield hitting a record high amid fiscal health concerns ahead of national elections. The potential defeat of the ruling coalition, which could lead to sales tax cuts, fueled market anxieties. Rising living costs and sliding approval ratings for Prime Minister Ishiba further contributed to the bond market's unease. 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. ADVERTISEMENT 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. ADVERTISEMENT 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. ADVERTISEMENT "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. ADVERTISEMENT 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%. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
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%.
