JGBs edge higher, tracking gains in U.S. Treasurys-wsj

JGBs edge higher, tracking gains in U.S. Treasurys-wsj

Japanese government bonds (JGBs) have shown notable strength, mirroring the upward trend in U.S. Treasury yields. The 10-year Japanese government bond yield (JGB10Y=RR) rose to 0.648% on Monday, September 12, 2025, following the gains in U.S. Treasury yields. This movement underscores the broader global trend of rising long-term interest rates.

The U.S. 10-year Treasury yield (US10Y) was up 1 basis point at 4.766% , marking a significant increase from the previous week. The long end of the U.S. Treasury yield curve has been volatile, with yields fluctuating in response to economic data and policy announcements. Investors are closely watching the Federal Reserve's preferred inflation gauge and the upcoming remarks from U.S. Federal Reserve officials, including Chair Jerome Powell .

The Japanese bond market has been sensitive to global economic developments. The rise in U.S. Treasury yields has led to a similar increase in JGB yields, as investors seek higher returns on long-term investments. The Bank of Japan (BOJ) has maintained a cautious stance on monetary policy, with the yield curve remaining relatively flat despite the global trend of rising rates.

The 30-year Japanese government bond yield (JGB30Y=RR) also saw an increase, rising to 1.445% on Monday. This reflects the broader market sentiment that long-term interest rates are likely to rise, driven by inflation expectations and monetary policy tightening.

In addition to the global economic factors, the Japanese bond market has been influenced by domestic economic indicators. The Bank of Japan's recent policy decisions and the country's economic outlook have also played a role in shaping the bond market's performance.

The rise in JGB yields is a reflection of the broader global trend of rising long-term interest rates. Investors are seeking higher returns on long-term investments, and the Japanese bond market has been a beneficiary of this trend. The Japanese government's fiscal policy and the BOJ's monetary policy have also contributed to the stability of the JGB market.