Global Market: Japan bond yields fall as US tech selloff fuels safe-haven demand - The — Bizwire

Japanese government bond (JGB) yields fell on Monday as a risk-off mood swept through financial markets following a selloff in US technology stocks, while Prime Minister Sanae Takaichi's pledge to control government debt issuance provided additional support.The benchmark 10-year JGB yield declined 3 basis points to 2.9%. Bond yields move inversely to prices.Read more: Global Market Today: Asian shares fall as AI spending worries weigh on sentimentUS Treasury prices rose on Friday, capping a strong week as investors sought safer assets amid a selloff in artificial intelligence-linked stocks. The weakness in US technology shares raised concerns about a potential spillover into Japanese AI and semiconductor stocks, strengthening demand for government bonds.Takaichi said on Monday that Japan would appropriately control the size of its debt issuance, a statement that helped support sentiment in the bond market amid concerns over the country's fiscal outlook.Read more: Rising borrowing costs signal funding risks for global AI expansion: Jefferies reportAccording to Reuters, the 20-year JGB yield fell 1.5 basis points to 3.790%, while the two-year yield, which is particularly sensitive to expectations for Bank of Japan (BOJ) policy rates, dropped 1.5 basis points to 1.890%. The five-year yield was unchanged, while the 30-year yield held steady. The 40-year JGB yield had yet to trade.Monetary policy expectations also remained in focus after the BOJ raised interest rates in September and signalled a greater emphasis on tackling inflation.BOJ Governor Kazuo Ueda said on Monday that underlying inflation was quite close to the central bank's 2% target, reinforcing expectations that policymakers would continue to assess price trends when determining the future path of interest rates.The movement in Japanese bond yields reflects a balance between global risk aversion, which tends to support demand for government debt, and expectations surrounding domestic monetary policy and the government's borrowing plans.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)

Global Market: Japan bond yields fall as US tech selloff fuels safe-haven demand - The

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