JGB yields track U.S. Treasury higher on Powell's reappointment

BY Reuters | TREASURY | 11/24/21 12:56 AM EST

TOKYO, Nov 24 (Reuters) - Japanese government bond yields rose on Wednesday, taking cues from elevated U.S. Treasury yields, while local investors shrugged off strong results from the Bank of Japan's bond-buying operations. The 10-year JGB yield rose one basis point to 0.080% and the 20-year JGB yield climbed 1.5 basis points to 0.475%.

In the United States, the Treasury yields rose as investors prepared for the U.S. Federal Reserve to become more aggressive in fighting inflation after President Joe Biden nominated Chair Jerome Powell for a second term.

The 30-year JGB yield also rose 0.5 basis point to 0.685%, while the 40-year JGB yield was flat at 0.735%.

The two-year JGB yield was not traded and remained at minus 0.135%.

The five-year yield advanced 0.5 basis point to minus 0.085%.

Benchmark 10-year JGB futures fell 0.13 point to 151.56, with a trading volume of 20,535 lots. (Reporting by Tokyo markets team)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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