Japan's 10-year bond yield rises one basis point to one-month high

Japan's 10-year bond yields tracked U.S. Treasury peers higher on Wednesday, extending gains to hover near a level that prompted the Bank of Japan to step in.

The 10-year JGB yield rose one basis point to 0.225%, its highest since Feb. 17.

Bond markets extended their retreat as investors braced for the U.S. Federal Reserve to take an even more aggressive approach to tame inflation.

Two-year Treasury yields are up 76 basis points (bps) in March and 10-year yields are up almost 60 bps to 2.4154%, the highest since 2019.

The Bank of Japan last month defended its key bond yield target by offering to buy unlimited amount of 10-year bonds at 0.25%. That was after the benchmark yield rose to 0.230%, the highest level since 2016 and close to the implicit 0.25% cap the BOJ set around its target of 0%.

The 20-year JGB yield rose two basis points to 0.715%, its highest since Feb. 18.

The 30-year JGB yield rose 1.5 basis points to 0.930%, also the highest since Feb. 18, and the 40-year JGB yield rose two basis points to 0.965%, the highest since Feb. 25.

The two-year JGB yield fell 0.5 basis point to minus 0.030% and the five-year yield was flat at 0.040%.

Benchmark 10-year JGB futures fell 0.16 point to 149.71, with a trading volume of 14,367 lots.

(Reporting by Tokyo markets team)