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Most JGBs Slip in Line with U.S. Treasuries

TOKYO, Nov 11 Reuters Most Japanese government bond prices inched lower on Wednesday tracking overnight losses in U.S. Treasuries, as news about a promising COVID19 vaccine and hopes for global economic recovery continued to weigh on market sentiment.

Benchmark 10year JGB futures fell 0.07 point to 151.85, with a trading volume of 18,236 lots, while the 10year JGB yield edged up half a basis point to 0.035.

The 20year JGB yield stood flat at 0.405, while the 30year JGB yield and the 40year JGB yield gained half a basis point each to 0.650 and 0.685, respectively.

At the shorter end of the market, the twoyear JGB yield rose 1 basis point to minus 0.135, while the fiveyear yield inched up half a basis point to minus 0.100.

The Bank of Japan maintained the size of its JGB purchase, buying onetothree year notes worth 500 billion yen 4.75 billion as well as threetofive and fivetoten year maturities worth 420 billion yen each.

Separately, the market reacted little after the BOJ on Tuesday unveiled a scheme that offers rate boost to domestic lenders to consolidate and help revitalise regional economies.

Overnight, U.S. Treasury yield curve steepened as traders consolidated Mondays strong gains, with the spread between twoyear and 10year notes rising to its widest since February 2018.

1 105.2200 yen

Reporting by Tokyo markets team; Editing by Rashmi Aich

Source Reuters

 

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