TOKYO, Oct 9 (Reuters) - Japanese government bonds (JGB)
yields edged higher on Wednesday but lacked momentum amid a
dearth of catalysts a day ahead of a keenly anticipated U.S.
consumer price report.
Monetary policy at home and in the United States remain the
dominant themes for Japan's bond market and the potential for
the U.S. inflation reading on Thursday to alter bets on the pace
of the Federal Reserve's easing added an air of caution.
The 10-year JGB yield rose 1 basis point (bp)
to 0.93% as of 0552 GMT, staying at the top of its range of the
past month.
Benchmark 10-year JGB futures fell 0.11 yen, to
144.15 yen. Bond prices move inversely to yields.
The five-year yield added 1 bp to 0.55%, its
highest since Aug. 2, ahead of an auction of the securities on
Thursday.
The two-year yield was flat at 0.4%.
At the long end, the 20-year yield advanced
1.5 bps to 1.72%, while the 30-year yield gained
1 bp to 2.14%.
Japan's prime minister, on Wednesday, reiterated that
exiting deflation remains the top priority, suggesting that the
central bank has no urgency to raise rates further for now.
Mizuho Securities chief bond strategist Noriatsu Tanji said
the current wage growth of around 3% may not be enough to
sustainably achieve the Bank of Japan's 2% inflation target.
"It is a delicate question whether or not underlying
inflation will accelerate," he said.
"Considering the uncertainty over whether next year's spring
labour negotiations will be better than this year's, it seems
that there are still a number of hurdles to overcome."