The rise in JGB yields is probably not over, DBS Group Research's Eugene Leow says commentary.

So far this year, JGB 10-year yields have risen 43 bps while U.S. Treasury 10-year yields have dropped 26 bps, says the senior rates strategist.

"Fiscal and monetary divergences are both at play currently," Leow says.

"The U.S. is perceived to be tightening fiscal purse strings while Japan is not," the strategist says, adding that "the Fed has an easing bias while the BOJ has a tightening bias."

DBS expects JGB yields' bias to be higher and the JGB yield curve to be steeper in the coming quarters.

JGB yields curve marginally steepen, with the 2-year yield down 0.5 bp at 0.800% while the 40-year yield is up 0.5 bp at 2.965%.