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%.