TOKYO, Jan 4 (Reuters) - Japanese government bond (JGB) yields rose on Tuesday, tracking U.S. Treasury yields higher overnight, while improved risk appetite amid equities' rally curbed demand for safe-haven debt.
The 10-year JGB yield rose one basis point to 0.080% and the 20-year JGB yield rose 0.5 basis point to 0.480%.
Japanese shares jumped on the first trading day of the year, led by strong performances in chip-related heavyweights and automakers after Wall Street's overnight upbeat finish.
Overnight U.S. Treasury yields soared as investors braced for what could be an earlier-than-expected interest rate hike by the Federal Reserve this year despite the recent jump in COVID-19 cases.
Yields on shorter-end JGBs also rose, with the two-year JGB yield climbing 0.5 basis point to minus 0.090% and the five-year yield rising one basis point to minus 0.070%.
The 30-year JGB yield was flat at 0.690% and the 40-year bonds were not traded so the yield stayed at 0.745%.
Benchmark 10-year JGB futures fell 0.17 point to 151.42, with a trading volume of 19,741 lots.
Reporting by Tokyo markets team
Source: Reuters