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Ten-year JGB yield hits 7-week high on Fed tapering speculations

Thursday, 5 Dec 2013 | 10:08 PM ET

TOKYO, Dec 6 (IFR) - JGB prices dropped on Friday, with the 10-year yield rising to seven-week highs, after expectations the U.S. Federal Reserve could soon pare its bond-buying programme lifted U.S. and European bond yields.

The current 10-year JGB yield rose 1.5 basis point to 0.660 percent, its highest level since mid-October, while the 20-year yield rose 2.0 basis points to 1.500 percent .

The market was also slightly weighed down by a torrent of corporate and municipal bond issues on Friday. Traders say Friday's non-governmental bond issues are one of the heaviest in many years.

Investor demand for these new bonds is strong, as the Bank of Japan's massive bond buying is leading to a shortage of bonds, market players said.

The benchmark December 10-year JGB futures fell 0.12 point to 144.70.