Benchmark JGB yield hits 29-year high after Fed decision, higher oil prices

By Satoshi Sugiyama

TOKYO, April 30 (Reuters) - Benchmark Japanese government bond (JGB) yields rose to a 29-year high on Thursday after the Federal Reserve signalled growing concerns about inflation, while a stalemate in U.S.-Iran peace talks pushed oil prices higher. The benchmark 10-year JGB yield rose 4 basis points (bps) to 2.500%, the highest since June 1997. The five-year yield rose 3 bps to 1.885%. Yields move inversely to bond prices. Although the Fed kept interest rates steady, three policymakers dissented from the central bank's statement, reflecting a deepening split over whether it should continue signalling a bias toward lower borrowing costs. U.S. Treasury yields rose to a one-month high after the release of the policy statement. Oil prices surged over 6% on Wednesday to settle at their highest in weeks, with deadlocked U.S.-Iran negotiations making investors more concerned about a prolonged disruption to Middle Eastern energy supplies. (Reporting by Satoshi Sugiyama; Editing by Christian Schmollinger)