Japan’s 10-year yield hits one-month high after US yield surge

TOKYO, Aug 22 (Reuters) – Japan’s 10-year government bond yield rose to a one-month high on Monday, tracking gains in Europe and the United States at the end of last week after a record acceleration in German producer prices lifted both Bund and benchmark Treasury yields.

The 10-year JGB yield rose 2 basis points (bps) to 0.215%.

July producer prices in Germany – the euro zone’s leading economy – leapt 37.2% from the same time last year and 5.3% from June, mainly because of rising energy costs, sending German bond yields sharply higher.

That contributed to around a 10 bp-rise in the US benchmark 10-year Treasury yield to a one-month high of 2.988% on Friday.

Yields on Japan’s longer-dated notes played catch up on Monday, with the 20-year JGB yield rising 5 bps to 0.815% and the 30-year JGB yield climbing 5.5 bps to 1.125%.

The 40-year JGB yield rose 6 bps to 1.245%.

The two-year JGB yield rose 0.5 bp to -0.085% and the five-year yield rose 1.5 bps to 0.010%.

Benchmark 10-year JGB futures fell 0.49 point to 149.71, with a trading volume of 16,424 lots.

(Reporting by Tokyo markets team;Editing by Kirsten Donovan)