TOKYO, Aug 10 (Reuters) – Yields on Japanese government bonds rose on Tuesday, tracking U.S. Treasuries as a strong labour market recovery in the United States spurred bets for a near-term tightening of monetary policy.
The 10-year JGB yield rose 1 basis point to 0.020% with half an hour to the end of trading after similar-dated Treasury yields rose much as 1.3310% overnight for the first time since mid-July.
Ten-year JGB yields were at zero on Wednesday.
Benchmark 10-year JGB futures fell 0.14 point to 152.16, with a trading volume of 17,788 lots.
Yields on two-year and five-year JGBs each rose 0.5 basis point to minus 0.135% and minus 0.125%, respectively.
The 20-year JGB yield rose 1 basis point to 0.400%, while the 30-year yield also rose 1 basis point to 0.645%.
Japanese markets were closed on Monday for a national holiday.
JGB yields are getting a boost from U.S. yields. However, once JGB yields rise they are unlikely to come down as they will be supported by caution ahead of the 30-year JGB auction on Wednesday, said a market participant at a domestic bank.
Following a strong U.S. payrolls report on Friday, Atlanta Federal Reserve Bank President Raphael Bostic and Boston Fed President Eric Rosengren said separately on Monday that a taper of asset purchases was likely as soon as this autumn if the labour market recovery continues at the current pace.
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