JGB yields jump, tracking US Treasuries' rebound on hopes of tariff deal

TOKYO, April 8 (Reuters) - Japanese government bond (JGB) yields jumped on Tuesday, tracking U.S. Treasury yields' overnight rise, as investors turned to a risk-on mode as local equities logged sharp gains.

The 10-year JGB yield JP10YTN=JBTC climbed 14 basis points (bps) to 1.25% in its steepest daily jump since December 2022.

"Today's sharp rise in yields was driven by the U.S. bond yields declines," said Miki Den, a senior Japan rate strategist at SMBC Nikko Securities.

"Japanese shares jumped, which also prompted investors to sell JGBs."

Yields move inversely to prices.

U.S. Treasury yields rebounded on Monday and 10-year yields were on track for their biggest daily gain in a year on rising optimism that some countries may negotiate deals with U.S. President Donald Trump to avoid trade tariffs.

Japan's Nikkei share average climbed 6% on Tuesday, bouncing off a 1-1/2-year low hit in the previous session. .T

Japan's 10-year bond yield rose to a 17-year high of 1.59% in late March on expectations that the Bank of Japan (BOJ) would hike interest rates.

The yield dropped almost 50 bps from that high on Monday, as fears of a global recession, triggered by U.S. tariffs, drove safe-haven bets.

The two-year JGB yield JP2YTN=JBTC rose 4.5 bps to 0.625%, while the five-year yield JP5YTN=JBTC added 10 bps to 0.84%.

Yields on bonds with super-long maturities gained more after a weak auction for the 30-year bonds.

The 20-year JGB yield JP20YTN=JBTC added 14 bps to 2.04%, the 30-year JGB yield JP30YTN=JBTC rose 14 bps to 2.41% and the 40-year JGB yield JP40YTN=JBTC gained 17 bps to 2.765%.