Japanese government bond yields ticked higher on Tuesday, joining U.S. Treasury yields in climbing off one-month lows. The 10-year JGB yield rose 0.5 basis point to 0.060%, after dipping as low as 0.050% on Monday for the first time since Oct. 5. That’s after equivalent maturity Treasury yields recovered overnight from the low hit Friday at 1.436%, a level not seen since late September, on strong monthly payrolls report. The yield was last around 1.48%. There’s a sense that price action in U.S. Treasuries was overdone at the end of last week, and yen bonds also rose substantially to yesterday, so to see some selling off is natural,” said Makoto Suzuki, senior bonds strategist at Okasan Securities. The five-year JGB yield rose 0.5 basis point to minus 0.095%, while the 20-year yield gained 1.5 basis points to 0.460% The 30-year JGB yield added 0.5 basis point to 0.680%. An auction of 900 billion yen ($8 billion) of the securities went smoothly, with gauges of demand improving from the previous sale. ADVERTISEMENT Two-year notes were untraded, and last yielded minus 0.120%. Benchmark 10-year JGB futures rose 0.02 point to 151.87, with a trading volume of 25,072 lots.
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