TOKYO, – Japan’s 10-year government bond yield slipped on Monday, tracking U.S. Treasury bond yield declines following the selection of fund manager Scott Bessent as the next U.S. Treasury secretary.
The 10-year JGB yield fell 0.5 basis point to 1.075%.
Treasuries rallied in the Asian session on Monday as bond investors cheered the selection of Scott Bessent as U.S. Treasury secretary, reckoning on a steady hand on government finances.
Bond prices move inversely with bond yields.
Japan’s 10-year bond yield last week hit a four-month high of 1.095% on expectations for the Bank of Japan’s rate increase in the near future.
“The market still braces for the BOJ’s rate hike, but for the 10-year bond yield to rise further, it needs a push from U.S. Treasury yields,” said Naoya Hasegawa, chief bond strategist at Okasan Securities.
As of 0602 GMT, overnight index swap indicated a 58.36% chance of the BOJ raising rates to 0.5% in…
