Superlong JGB Yields Rise on Worries over Debt Issuance

TOKYO, Nov 26 (Reuters) – Yields on super-long Japanese government bonds rose on Thursday, weighed down by worries about a probable increase in bond issuance by the government to help fund its stimulus package aimed at reviving the coronavirus-hit economy.

Benchmark 10-year JGB futures fell 0.04 point to 152.1, with a trading volume of 13,537 lots, while the 10-year JGB yield added half a basis point to 0.020%.

In the super-long zone, the 20-year JGB yield was flat at 0.385%.

The 30-year JGB yield rose half a basis point to 0.650%, while the 40-year JGB yield climbed 1 basis point to 0.695%.

At the shorter end of the market, the two-year JGB yield moved in the opposite direction, falling half a basis point to minus 0.155%.

The five-year yield was unchanged at minus 0.115%.

Traders are looking for any clues on Japan’s third extra budget or additional debt issuance, as the finance ministry officials hold a meeting with JGB investors and primary dealers on Thursday.

Japan’s third extra budget is likely to exceed 20 trillion yen ($191.74 billion), the Sankei newspaper reported on Tuesday, adding that the government would finalise the size of the stimulus in early December.

Japan has already announced $2.2 trillion across two stimulus packages to respond to the COVID-19 pandemic, including cash payments to households and small business loans.

Separately, the Bank of Japan maintained the size of all of its JGB purchase.

($1 = 104.3100 yen)

(Reporting by Tokyo markets team; Editing by Rashmi Aich)

Source: Reuters

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News