Traders on guard for a further bond yield rise

Uchida: The central bank will step into the Japanese government bond market depending on the pace of yield increases. — Reuters

TOKYO: Bond traders are on guard for a further five-basis-point increase in benchmark Japanese bond yields amid speculation that it would trigger another foray into the market by the central bank.

The yield on 10-year government notes has already climbed about 20 basis points to a nine-year high of 0.655% reached last Thursday since July 27, the day before the Bank of Japan (BoJ) adjusted policy to allow the rate to increase to as high as 1%.