TOKYO—Japanese government bond yields climbed Friday amid a stronger domestic stock market and other signs that investors were turning toward riskier assets.
The benchmark 10-year yield firmed 0.03 percentage point to 1.23% after trading as high as 1.245%.
But "it's difficult to judge only by today's movement and say that the risk-aversion trend has reversed," said Deutsche Securities' strategist Makoto Yamashita.
"The trend is still to reduce risks. With little hope of sharp yield rises, investors may have chosen to purchase on dips today," he said.
The market's major interest remains on developments in the currency markets amid European governments' ongoing financial problems, analysts say. But JGB players will also closely examine the size of the Bank of Japan's new plan to encourage bank lending to companies. The central bank's policy board has been ironing out details of the lending facility for two months. It is expected to release its final plan at the end of a two-day meeting starting Monday.
The bank will likely discuss making about 2 trillion yen to 3 trillion yen ($21.90 billion to $32.86 billion) available to banks to lend to the private sector, according to people familiar with the matter.
