0009 GMT - JGBs edge lower in price terms in the morning Tokyo session amid rising expectations for further BOJ rate increases. The sell-off in the medium- to long-term tenors of JGBs has gotten bigger as rate hikes are increasingly priced in, Citi Research's Tomohisa Fujiki says in a research report. This is likely owing to favorable economic indicators, including wages, the rates strategist says. The overnight-index-swap market implies around 30% probability of a rate increase at BOJ's April 30-May 1 meeting. For the Finance Ministry's auction of 1 trillion yen in 20-year JGBs today, a 2% yield may appeal to investors, Fujiki adds. The 5-year JGB yield is up 1bp at 1.060%. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
February 17, 2025 19:09 ET (00:09 GMT)
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