Japan's 10-year bond yield hits 30-year high after US Treasury selloff

Business Recorder reported that Japan's 10-year government bond yield climbed to 3.055 per cent early on Thursday, its highest level since August 1996. The benchmark rose 8 basis points, while the 30-year yield gained 5.5 basis points to 4.125 per cent. Yields and bond prices move in opposite directions, so the rise means bond prices fell.

The jump followed a sharp rise in US Treasury yields overnight, which came after a purchasing managers' report that was stronger than expected and an auction of five-year notes that drew a weak reception. Senior strategist Katsutoshi Inadome of Sumitomo Mitsui Trust Asset Management attributed the upward pressure to inflation worries stemming from the weaker yen. A weaker yen makes imports dearer and lifts domestic prices, while the dollar hit a near two-month peak on Wednesday as bets on a Federal Reserve rate increase strengthened.