Japan's 10-year yield falls on risk aversion, debt issuance pledge

Japanese government bond yields moved lower on Monday, with the 10-year benchmark down 3 basis points to 2.9%, Business Recorder reported. The decline followed a retreat in US technology shares that encouraged investors to seek safer assets, while Prime Minister Sanae Takaichi’s pledge to manage the volume of government borrowing also supported sentiment.

The 20-year yield lost 1.5 basis points to 3.790%, and the two-year yield fell by the same amount to 1.890%; the five-year yield was unchanged. The 30-year rate also held steady, while the 40-year bond had not traded. Bank of Japan Governor Kazuo Ueda said underlying inflation was close to the central bank’s 2% goal, after the bank’s September rate increase and indications it was turning its attention to inflation.