Yields on long-term Japanese government bonds rose on Wednesday, tracking a similar move in Treasuries after positive U.S. data and optimistic comments from Federal Reserve members fuelled hopes for an economic rebound.

US manufacturing activity rose in December to the highest since August 2018, data released on Tuesday showed, which gave yields a boost.

Cleveland Fed President Loretta Mester said on Tuesday the central bank could begin tapering debt purchases next year depending on the state of the economy, echoing similar comments Atlanta Fed President Raphael Bostic made on Monday.

However, some investors avoided taking big positions in JGBs as results from important U.S. Senate elections in Georgia trickled in, because the outcome will influence incoming President Joe Biden’s policy agenda.

Benchmark 10-year JGB futures fell 0.08 point to 151.95, with a trading volume of 27,786 lots.

The 10-year JGB yield was flat at 0.010%, but the 20-year JGB yield rose 0.5 basis point to 0.395%.

At the long end of the yield curve, the 30-year JGB yield rose 1 basis point to 0.645%, while the 40-year JGB yield rose 1 basis point to 0.695%.

The five-year yield rose 0.5 basis point to minus 0.115%.

Reuters