JGB yields climb higher with US peers as investors eye tariff risks

By Brigid Riley

TOKYO, March 24 (Reuters) - Japanese government bond (JGB) yields rose on Monday, following U.S. Treasury yields higher, as a risk-off mood spread ahead of a looming deadline for another round of U.S. tariffs to come into effect.

The 10-year JGB yield was up 1.5 basis points (bps) at 1.535%, 10-year JGB futures fell 0.15 points to 137.88 yen.

Investors bought less risky assets as they awaited more details on levies that the United States has said will be implemented on April 2.

The U.S. benchmark 10-year Treasury yield rose on Friday but held in the relatively tight range it has traded in this month as investors balanced uncertainty over the impact of tariffs with the likelihood that the Federal Reserve will keep rates unchanged for the time being.

U.S. Treasury yields climbed higher during Asian trading hours on Monday, putting upward pressure on JGB yields.

The impact of rising trade tensions has been keeping the Bank of Japan on guard as well.

The Japanese central bank stood pat on Wednesday and warned of heightening global economic uncertainty, suggesting the timing of rate hikes will depend largely on the fallout from potentially higher U.S. tariffs.

BOJ Governor Kazuo Ueda's remarks following the decision were "largely balanced", giving market participants little reason to shift expectations for further monetary policy normalisation, Mizuho Securities Chief Bond Strategist Noriatsu Tanji and Market Analyst Yurie Suzuki wrote in a note.

"Still, the fact that the meeting did not prompt a further rise in rates may help stabilize the market mood amid a growing sense that recent weakness may be winding down," they added.

The five-year yield ticked up 1 bp to 1.13%, while the two-year JGB yield was untraded as of 0530 GMT.

The 20-year JGB yield climbed 1 bp to 2.275%.

The 30-year JGB yield rose 1.5 bp to 2.605%. (Reporting by Brigid Riley; Editing by Janane Venkatraman)