Yen rises as Japanese bond selloff eases and government-bond yields retreat

  • The yen gained about 1% against the U.S. dollar as global bond markets and Japanese government bonds recovered.
  • Japan’s 30-year JGB yield fell 0.10 percentage point to 4.07%, while the 10-year yield declined to around 2.9%.
  • A strong 30-year bond sale and hawkish BOJ signals supported demand amid expectations for rate increases this month and in December.

The yen rose about 1% against the U.S. dollar as global bond markets recovered, while Japanese government-bond yields declined across maturities. The 30-year JGB yield fell 0.10 percentage point to 4.07% on Thursday, and the 10-year yield fell to around 2.9% on Friday for a second consecutive session, moving further below its highest level since 1996. A successful 30-year bond sale eased market concerns and indicated firm investment demand, while comments from Bank of Japan board member Hajime Takata and Governor Kazuo Ueda reinforced expectations that the BOJ could raise rates by a quarter point this month and again in December.

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