TOKYO, Sept 29 (Reuters) - Japanese government bond (JGB) yields hit multi-year highs on Friday amid a rise in U.S. Treasury yields, while investors adjusted their positions ahead of auctions next week.
The 10-year JGB yield rose 1.5 basis points (bps) to 0.770%, hitting a new high since September 2013.
The 20-year JGB yield rose 1.5 bps to 1.485%, its highest since May 2015.
"The JGB yields are tacking the trend of U.S. Treasury yields which are on the rise since the FOMC (U.S. Federal Open Market Committee)," said Ataru Okumura, senior strategist at SMBC Nikko Securities.
"Also investors adjusted their positions ahead of auctions for 10-and 30-year auctions next week."
The Ministry of Finance will hold the 10-year bond auction on Tuesday and the 30-year bond auction on Thursday.
Even as the 10-year bond yield kept rising after crossing the psychologically significant level of 0.75% in the previous session, the Bank of Japan may be hesitant to step in the market as that could hurt the already weakened yen, Okumura said.
The BOJ last week decided to keep its ultra-low rate policy unchanged. A stark contrast of the BOJ's stance with that of the U.S. and European central banks has been hurting the yen's value, sending the currency to a 11-month low against the dollar this week.
The 30-year JGB yield rose 1.5 bps to 1.735%, its highest since Dec. 2013.
The two-year JGB yield rose 1 bp to 0.055%, its highest since Jan. 13.
The five-year yield rose 1 basis point to 0.315%, its highest since Jan. 17. (Reporting by Junko Fujita; Editing by Nivedita Bhattacharjee)
