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JGB yields rise as markets weigh impact of US tariffs

ReutersFeb 3, 2025 12:47 AM

- Medium- and long-term Japanese government bond (JGB) yields climbed to their highest in over a decade on Monday as market players weighed U.S. tariffs on Mexico, Canada and China, and their potential impact on the global economy.

The 10-year JGB yield JP10YTN=JBTC rose to its highest since April 2011 at 1.26% in early trade before sliding to 1.235% by 0034 GMT, while 10-year JGB futures 2JGBv1 were up 0.19 points at 140.86 yen.

The two-year JGB yield JP2YTN=JBTC ticked up to 0.735%, a level last seen in October 2008, and was last down 0.5 basis point (bp) at 0.725%.

The five-year yield JP5YTN=JBTC rose 1 bp to 0.915%, its highest since November 2008.

Elsewhere, U.S. Treasury futures slipped and traders lowered expectations for U.S. interest rate cuts, figuring tariffs on the country's top trading partners risked stoking inflation.

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