JGB yields see modest rise ahead of BOJ, Fed commentary

JGB yields rise: Japanese government bond (JGB) yields observed a modest increase on Thursday, with market remaining quiet as market participants anticipated key remarks from hes of Bank of Japan (BOJ) and Federal Reserve on Friday. 

Mid- and long-date JGB yields rose slightly as market players justed position from what were lessening concerns about a US recession. Remaining movement was cautious ahe of BOJ Goverr Kazuo Ueda's appearance before Japan's parliament, where he may discuss central bank decision to raise rates last month. 

At 0415 GMT, benchmark 10-year JGB yield was up 0.5 basis points to 0.87 per cent. 10-year JGB futures fell 0.14 yen to 144.84 yen. Analysts would like to see if Goverr Ueda would change his hawkish stance given recent market volatility. A market analyst from Mizuho Securities ted that re was a strong uncertainty around that, and it was hard to make a move. 

recent hawkish BOJ development was also related to a huge drop of Japanese equities, largest single-day decline since 1987 Black Monday crash. same analyst ted some institutional investors were w thinking about ar rate hike this year, after BOJ released research papers that anticipated that broening inflationary pressures might also continue to require stey increases in rates. 

On world st, US Fed Chair Jerome Powell will be speaking at Jacks Hole Ecomic Symposium on Friday, and market expects possibility of rate cuts by Fed in September. market will be paying attention to Powell's comments on size of a potential cut, and policy outlook. 

In or yield movements, 2-year JGB yield (JP2YTN=JBTC) rose by 1.5 basis points to 0.36 per cent. 5-year yield (JP5YTN=JBTC) rose by 1 basis point to 0.485 per cent with both 20-year (JP20YTN=JBTC) and 30-year (JP30YTN=JBTC) JGB yields unchanged at 1.7 per cent and 2.08 per cent, respectively.

(With Reuters inputs.)