The dollar stood a top three months highs against the yen on Friday after enhanced prospects of a near-term U.S. interest rate hike prompted a surge in Treasury yields, which also felt a strong pull from a jump in their British and euro zone peers. The rise in yields was less pronounced at the short end of the yield curve, with the two- year U.S.Treasury note yield up 1.6 basis point at 0.888%.
United States government yields were fuelled further by upbeat jobless claims data and were last at 1.85 per cent.
Kuroda said it "would not be strange" to see long-term bond yields rise, according to The Wall Street Journal.
The surprise sell-off provided a sobering reminder to investors of the hefty losses they face from a sustained rise in bond yields. On Wednesday, British 10-year government bond yields were up 11 basis points to 1.27 percent, closing to level before Brexit.
MSCI's global stock index was down 0.2 per cent, the fourth consecutive down day marking a losing streak not seen for two months.
Asian stocks were subdued, with MSCI's broadest index of Asia-Pacific shares outside Japan edging down 0.l per cent, reflecting Wall Street's unconvincing performance overnight. Hong Kong's Hang Seng lost 0.4 percent while Japan's Nikkei gained 0.7 percent on a weaker yen.
"Some people did not want to be short ahead of that, also with the Bank of Japan and Fed meetings next week, and US nonfarm payrolls data one week from today".
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The dollar was firm at 105.215 yen JPY=, having gone above the 105 threshold for the first time since late July on the previous day when it rallied 0.8 percent.The greenback was boosted after upbeat US data including jobless claims, manufacturing activity and pending home sales, strengthened the case for the Federal Reserve tightening monetary policy by year-end and lifted Treasury yields.The benchmark USA 10-year yield US10YT=RR climbed to a five-month high well above 1.8 percent, with a strong pull also coming from surging British Gilt and German bund yields.
The chances of further stimulus from the Bank of England weakened after a stronger reading on U.K. GDP in the third quarter.
The 10-year Gilt yield GB10YT=TWEB has risen almost 20 basis points this week to levels not seen since Britain's vote in June to leave the European Union.
Last month, the BoJ introduced a new twist in monetary stimulus, saying that it would adjust its bond purchases to keep the yield on 10-year Japanese bonds at zero.
Yields rose as bond prices fell on diminished hopes over further monetary stimulus from some of the world's largest central banks. But it has recently risen amid concerns that ultra-easy policies practiced by the major central banks could have their limits and may not be continued indefinitely.
Boosted by the spike in Treasury yields, the dollar scaled a three-month peak of 105.370 yen.