JGB benchmark yield rises to 2-week high as risk appetite keeps improving

TOKYO, July 15 (Reuters) - The benchmark Japanese government bond yield rose to two-week highs on Friday as broader investor risk appetite continued to improve, prompting a rally in Tokyo shares and dimming the allure of safe-haven debt.

The 10-year JGB yield was up 3 basis points at minus 0.235 percent, its highest since July 1.

In addition to ebbing risk aversion, the prospect of Japan issuing fresh debt to fund fiscal stimulus plans has weighed on JGBs this week.

The benchmark yield had descended to a record low of minus 0.300 percent last week when Brexit worries and expectations of fresh monetary stimulus had boosted government bonds globally.

The 30-year JGB yield climbed 3.5 basis points to 0.175 percent, a three-week high last touched during the Brexit referendum.

Tokyo's Nikkei, which has fully recovered from the deep losses suffered on the Brexit shock, was on track to gain nearly 10 percent this week, boosted by a record rally on Wall Street and the yen's slide versus the dollar.

(Reporting by the Tokyo markets team; Editing by Eric Meijer)

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