Sunday, March 26

JGB yields jump as investors assess Ukraine crisis

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TOKYO — Japanese government bond yields jumped on Friday as demand for safe-haven debt cooled with investors weighing the potential economic fallout from Russia’s invasion of Ukraine.

Japan’s 10-year government bond yields fell to a three-week low on Thursday, when investors had rushed to safer assets following news of Russia’s attack on Ukraine.

On Friday, the 10-year JGB yield rose two basis points to 0.205% and the 20-year JGB yield jumped 3.5 basis points to 0.685%.

Japanese shares also rose for the first time in six sessions, with heavyweight technology stocks leading the charge, as the market tracked a sharp rebound on Wall Street overnight.

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“Geographical risks still remain high but investors seem to have digested most of them,” said Makoto Suzuki, senior bond strategist at Okasan Securities.

“It might be hard to make active bets ahead of the FOMC (Federal Open Market Committee) next month and ahead of the end of (Japan’s) fiscal year.”

The 30-year JGB yield jumped 4.5 basis points to 0.920% and the 40-year JGB yield rose 4.5 basis points to 0.965%. The two-year JGB yield was flat at minus 0.030%. The five-year yield rose one basis point to 0.030%.

Benchmark 10-year JGB futures fell 0.16 point to 150.28, with a trading volume of 19,714 lots.

(Reporting by Tokyo markets team; Editing by Devika Syamnath)