JGBs Mixed as U.S. Election Outcome, Jobs Data in Focus

TOKYO, Nov 6 (Reuters) – Japanese government bond prices were mixed on Friday as investors awaited the U.S. presidential election results and jobs data, while firm Tokyo shares also weighed on the market.

Benchmark 10-year JGB futures rose 0.03 point to 152.17, with a trading volume of 16,603 lots, while the 10-year JGB yield edged up half-a-basis point to 0.020%.

The 20-year JGB yield gained 1 basis point to 0.390%.

The 30-year JGB yield and the 40-year JGB yield climbed 1.5 basis points to 0.625% and 0.655%, respectively.

Yields on the shorter end of the market moved in the opposite direction, the two-year JGB yield and the five-year yield falling half-a-basis point each to minus 0.145% and minus 0.120%, respectively.

Democrat Joe Biden edged closer to victory, while U.S. President Donald Trump made false claims, filing lawsuits and calling for recounts in a race yet to be decided.

The market was less likely to chase prices higher ahead of the U.S. jobs data, said Makoto Suzuki, senior bonds strategist at Okasan Securities.

Data due later in the day includes U.S. non-farm payrolls, which is expected to show a slight slowdown in job creation.

The appeal of safe-haven assets dimmed as Japan’s Nikkei share average closed at its highest level since November 1991 on Friday, underpinned by growing expectations of a gridlock in U.S. Congress under a possible Joe Biden presidency.

(Reporting by Tokyo markets team)

Source: Reuters

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