US Treasury bond yields rose following the Bank of Japan's interest rate hike.

In Asian midday trading, yields on US treasuries across all maturities have risen. This comes after the Bank of Japan raised interest rates by 25 basis points to a three-decade high of 0.75%. Investors may also be reassessing the sharp drop in US November inflation, as it could be related to data challenges from the government shutdown rather than changes in the economy itself. "Given concerns about the quality of this data, it is somewhat surprising to see a broad rebound in US treasuries prices. However, in the current thin trading holiday market, we really shouldn't read too much into any market fluctuations," said Michael Brown of Pepperstone in a report. According to Tradeweb data, the yield on 10-year US treasuries has risen by 2.3 basis points to 4.138%.