Japan Yields Rise, Following Treasuries, to Highest Since July 4

Japan’s bonds fell, with the benchmark rate climbing to a six-week high, as domestic government securities followed declines in U.S. debt yesterday and today ahead of U.S. data on inflation.

The benchmark 10-year yield rose three basis points, or 0.03 percentage point, to 0.82 percent in Tokyo, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker. That was the highest level since July 4 and the biggest increase in a week. The five-year rate increased two basis points to 0.215 percent, the highest since July 2.

Ten-year Treasury yields rose four basis points to 1.78 percent in London, and reached 1.79 percent the highest since May 22, according to Bloomberg Bond Trader data. That followed a seven basis point jump yesterday.

Gains in the U.S. consumer price index slowed to 1.6 percent in July compared with a year earlier, from 1.7 percent in June, according to a Bloomberg News survey of economists before the Labor Department report at 8:30 a.m. in Washington. Prices rose 0.2 percent in July from June, the survey shows, the first advance since March.

To contact the reporter on this story: Naoto Hosoda in Tokyo at nhosoda@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

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