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JGB yields climb higher with US peers as investors eye tariff risks
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JGB yields climb higher with US peers as investors eye tariff risks
Mar 23, 2025 11:22 PM

TOKYO, March 24 (Reuters) - Japanese government bond

(JGB) yields rose on Monday, following U.S. Treasury yields

higher, as a risk-off mood spread ahead of a looming deadline

for another round of U.S. tariffs to come into effect.

The 10-year JGB yield was up 1.5 basis points

(bps) at 1.535%, 10-year JGB futures fell 0.15 points

to 137.88 yen.

Investors bought less risky assets as they awaited more

details on levies that the United States has said will be

implemented on April 2.

The U.S. benchmark 10-year Treasury yield rose on Friday but

held in the relatively tight range it has traded in this month

as investors balanced uncertainty over the impact of tariffs

with the likelihood that the Federal Reserve will keep rates

unchanged for the time being.

U.S. Treasury yields climbed higher during Asian trading

hours on Monday, putting upward pressure on JGB yields.

The impact of rising trade tensions has been keeping the

Bank of Japan on guard as well.

The Japanese central bank stood pat on Wednesday and warned

of heightening global economic uncertainty, suggesting the

timing of rate hikes will depend largely on the fallout from

potentially higher U.S. tariffs.

BOJ Governor Kazuo Ueda's remarks following the decision

were "largely balanced", giving market participants little

reason to shift expectations for further monetary policy

normalisation, Mizuho Securities Chief Bond Strategist Noriatsu

Tanji and Market Analyst Yurie Suzuki wrote in a note.

"Still, the fact that the meeting did not prompt a further

rise in rates may help stabilize the market mood amid a growing

sense that recent weakness may be winding down," they added.

The five-year yield ticked up 1 bp to 1.13%,

while the two-year JGB yield was untraded as of

0530 GMT.

The 20-year JGB yield climbed 1 bp to 2.275%.

The 30-year JGB yield rose 1.5 bp to 2.605%.

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