Japanese government bonds plunged Thursday, pressured by the yen’s sharp drop and Tokyo stocks’ big rebound.
The lead December futures contract on 10-year JGBs finished down 0.2 point from Wednesday at 145.41 on the Osaka Exchange.
Volume grew to 44,729 contracts from 35,808.
In late interdealer trading in cash JGBs, the yield on the latest 335th 10-year issue with a 0.5 percent coupon stood at 0.57 percent, up from 0.555 percent late Wednesday.
Selling hit JGBs from the outset, following U.S. Treasuries’ drop overnight amid lingering concerns over an early interest rate hike by the Federal Reserve Board, whose officials released their higher Fed funds rate projections for next year after a two-day policy-setting Federal Open Market Committee meeting that ended Wednesday.
The market was also pulled back by the dollar’s advance to top ¥108.50 and the Nikkei stock average’s surge to break the 16,000 line.Speech
via Japan News