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Japan's 10-year bond yield jumps ahead of BOJ policy decision

BY Reuters | ECONOMIC | 12/18/24 06:59 PM EST

TOKYO, Dec 19 (Reuters) - Japan's 10-year government bond yield jumped on Thursday, as investors awaited the Bank of Japan's policy decision later in the day, while a surge in U.S. Treasury yields overnight hurt sentiment.

The BOJ is holding its final policy meeting for the year next week with its decision to be announced just hours after the U.S. Federal Reserve signalled a slower rate cut pace next year.

U.S. Treasury yields surged on Wednesday after the Fed lowered interest rates by 25 basis points, as widely expected, but flagged a slower pace of easing next year amid a persistently stable labor market and inflation that has become stickier than normal.

(Reporting by Junko Fujita)

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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.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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