Japanese government bond (JGB) yields rose on Friday as Japan's former prime minister Shinzo Abe was shot while campaigning in the city of Nara, with reports saying Abe appeared to be in a state of cardiac arrest when airlifted to hospital.
Abe, best known for his signature "Abenomics" policy that featured bold monetary easing and fiscal spending, appeared to have been shot from behind by a man with a shotgun.
"He is an icon for leading the yen's weakness and introducing low interest rates," said Hideki Shibata, senior rates and currencies strategist at Tokai Tokyo Research Institute.
"We still have to watch out the situation but (this incident) could spur expectations that Japan may adjust its loose monetary policy,"
The 20-year JGB yield rose 3 basis points to 0.930% and the 30-year JGB yield rose 1 basis point to 1.235%.
The 40-year JGB yield rose 1 basis point to 1.400%.
The 10-year JGB yield, which the Bank of Japan has vowed to defend its cap of 0.25%, was flat at 0.245%.
Benchmark 10-year JGB futures fell 0.21 point to 149.26, with a trading volume of 11,817 lots.
Yields on short-ends also climbed, with the two-year JGB yield rising 0.5 basis point to -0.070% and the five-year yield rose 2 basis points to 0.025%.
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