JGB yields rise as investors adjust positions

By Junko Fujita

TOKYO, Dec 29 (Reuters) - Japanese government bond (JGB) yields rose on Monday as investors adjusted their positions, while market reaction to the summary of the Bank of Japan's policy meeting was limited.

BOJ policymakers debated the need to keep raising interest rates even after a hike in December, with one calling for increases every few months, a summary of opinions showed.

The yen strengthened as much as 0.3% against the U.S. dollar after the release of the summary, but the two-year JGB yield JP2YTN=JBTC, the most sensitive to the BOJ's policy rate, inched up only 0.5 basis point (bp) to 1.155%.

"What was written in the summary was almost within the expectations of the JGB market," said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management.

The 20-year JGB yield JP20YTN=JBTC jumped 4.5 bps to 3.005%. The yield rose sharply as market players adjusted their positions after the yield fell to as low as 2.940% last week, said Inadome.

JGB gained at the end of the week as expectations for restrained debt issuance helped yields retreat from a 26-year peak. Bond prices move inversely to their yields.

The 10-year JGB yield JP10YTN=JBTC rose 1.5 basis points to 2.055%.

The 30-year JGBs have not been traded as of 0544 GMT, and the yield JP30YTN=JBTC remained at 3.380%.