Japanese government bonds fell in Tokyo morning trade, tracking an overnight
decline in U.S. Treasuries. Rising crude prices could exacerbate Japanese
inflation and may prompt the Bank of Japan to accelerate rate hikes. Nomura FX
research said Tuesday’s strong 30-year JGB auction failed to push yields lower,
and the government may need to give explicit guidance on fiscal-market effects
to restore demand for long-dated JGBs. The 10-year JGB yield rose 1.5 bps to
2.855%, an intraday high since Oct 1996.
