0210 GMT - The Japanese government bond yield curve steepens in Tokyo's morning session amid concerns about higher inflation in Japan stemming from rising crude oil prices. Worries also persist over how the Japanese government will finance its planned reduction in the food consumption tax to 1% from 8% for two years starting next April. "In a world where people are fretting about the size of government budget deficits [and] ongoing inflationary pressures, what we are seeing is sort of a nasty bear steepening of yield curves at the moment," says NAB chief economist Sally Auld in a podcast. This "tends not to be an overly positive dynamic," Auld adds. The two-year JGB yield is unchanged at 1.690%; the 30-year yield is 4 basis points higher at 4.115%.
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