Japan's 30-year bond yields hit record high ahead of PM's remarks

By Junko Fujita

TOKYO, Oct 5 (Reuters) - Japan's 30-year government bond yield rose to a record high on Monday, as market players awaited remarks from Prime Minister Sanae Takaichi at the opening of an extraordinary parliamentary session later in the day.

Here are a few details:

• The 30-year JGB yield hit a record high of 4.235% and was last up 1.5 basis points (bps) at 4.22%.

• Market participants are closely watching Takaichi's policy speech after local media reported last week she was expected to pledge a nimble response to any unexpected developments in the economy and financial markets.

• Her remarks are being scrutinised for signs of a potential shift in her reflationary policy stance, following US pressure to stem the yen's weakness.

• "The yields across the curve stand at this level based on expectations for a shift in Takaichi's policy, but if she says anything that could suggest she would keep her expansionary policy unchanged, that could send the bond yields higher," said Masahito Sugawara, a senior strategist at Daiwa Securities.

• Investors have grown increasingly concerned that Takaichi's ambitious spending plans could worsen Japan's fiscal position since she took the office a year ago, adding pressure to the government bond market.

• Over the weekend, US Treasury yields reversed earlier declines as investors digested a weaker-than-expected September jobs report, which tempered bets for further Federal Reserve interest rate hikes.

• Government bonds across the globe have been under pressure recently as elevated energy prices, persistent inflation concerns and expectations of higher interest rates drive yields higher.

• Yields on Japan's shorter-dated bonds fell, with the two-year JGB yield declining 1.5 bps to 1.9%.

• The 10-year bond yield fell 2 bps to 3.08%.