PRECIOUS METALS | Japanese Government Bonds Fall as Oil Prices Rise and Yields Climb

Japanese government bonds fell in early Tokyo trading, tracking an overnight decline in U.S. Treasury prices. According to Jin10, the latest rise in oil prices may be weighing on Japanese government bond prices, as it could intensify inflation in Japan and prompt the Bank of Japan to accelerate its pace of interest-rate hikes. A Nomura foreign exchange research analyst said a strong 30-year government bond auction on Tuesday failed to push Japanese government bond yields lower. The analyst added that the government may need to provide clear guidance on the market impact of its fiscal policy to restore investor demand for long-term Japanese government bonds. The 10-year Japanese government bond yield rose 1.5 basis points to 2.855%, the highest intraday level since October 1996.