The nation’s 10-year bond yield climbed 7.5 basis points to 2.985%, and the 20-year rate rose seven basis points to 3.82%. Australia’s three-year yield jumped as much as 20 basis points to 5.05%, its highest level since 2011, while New Zealand’s two-year yield climbed 24 basis points.
The US bond-market selloff accelerated on Thursday as spiking oil prices fanned inflation fears and the Treasury Department bought fewer bonds than expected during its first expanded buyback operation.
Benchmark Treasury yields are approaching the closely watched 5% level ahead of US inflation data that stands to determine expectations for a Federal Reserve interest-rate hike next week.
“Overseas yields have risen amid higher oil prices and inflation concerns, so Japan’s 10-year yield may rise above 3%,” said Eiichiro Miura, senior general investment manager at Nissay Asset Management. “If the Bank of Japan signals at next week’s meeting that it may raise rates twice by year-end, that would likely be positive for longer-maturity JGBs.”
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