Aug 9 (Reuters) - Japanese government bond (JGB) yields fell
on Tuesday, following U.S. Treasury yields lower as investors
awaited U.S. data on inflation to gauge the Federal Reserve's
future monetary policy tightening plans.
The key 10-year JGB yield fell one basis
point 0.160%, which was the lowest level since March 9. It also
touched the same level last Friday.
The yield has been falling in recent months as the Bank of
Japan maintains its ultra-dovish stance, contrary to other
The U.S. consumer price index report for July, due on
Wednesday, will be closely scrutinized for clues to the scale of
further action central banks may take to tackle inflation.
"U.S. expectations for inflation appear to be strongly
linked to gas prices," said Toru Moritani, chief market
economist at Sumitomo Mitsui Banking Corporation. "On the other
hand, fears of wage inflation are getting stronger, as shown by
the July jobs report."
Yields on longer-term JGB contracts also dropped.
The 20-year yield fell 1 basis point to
0.790%, the 30-year yield fell 2 basis points to
1.120%, and the 40-year yield fell 2.5 basis
points to 1.255%.
The two-year JGB yield was flat at -0.105%,
and the five-year yield went untraded.
Benchmark 10-year JGB futures rose 0.06 point to
(Reporting by Sam Byford and Tokyo markets team; editing by