LONDON, July 23, 2018 (News Wires) - Germany's 10-year bond yield rose to its highest level in just over a month on Monday, following a jump in Japanese government bond yields on reports that the Bank of Japan was debating moves to scale back its massive monetary stimulus. Japan's 10-year yield rose to a six-month high at 0.090 percent after sources told Reuters on Friday the BOJ was holding preliminary discussions on possible changes to its monetary policy. These included adjustments to interest-rate targets and stock-buying techniques and a focus on ways to make the massive stimulus programme more sustainable. The rare jump in Japanese yields, which were set for their biggest one-day rise in almost two years, set the tone for other major bond markets. Across the euro zone, most 10-year bond yields were up 3-4 basis points on the day . Germany's 10-year bond yield rose to 0.40 per cent, its highest level in over a month. Italian 10-year yields, which are particularly sensitive at the moment because of political concerns there, were up over 6 bps at 2.645 per cent. US 10-year Treasury yields touched five-week highs at 2.95 per cent. "This story has got a lot of interest over the weekend, so it looks like investors are actively getting interested in what it means for JGBs," said Peter Chatwell, head of rates strategy at Mizuho in London. "The idea that the BOJ would want to review policy, we take seriously, but this has been ongoing for some time."
