Yield at 11-year high amid bets for further tightening

Cautious approach: Ueda at an economics talk in Tokyo. The central bank governor adopted a more hawkish tone two weeks ago and following a meeting with Kishida says the BoJ will be “vigilant” to yen moves in setting policy. — Bloomberg

TOKYO: Japan’s 10-year government bond yield rose to an 11-year high of 1% amid mounting bets for further Bank of Japan (BoJ) policy tightening this year, while a weak auction of 40-year debt added to the pressure for higher yields.

The 10-year Japan government bonds (JGB) yield was last 1.5 basis points (bps) higher at 0.995%, retreating slightly after touching 1% for the first time since May 2013, in the very early days of former BoJ governor Haruhiko Kuroda’s unprecedented policy-easing experiment.