Superlong JGB Yields Rise on Worries over Debt Issuance

TOKYO, Nov 26 Reuters Yields on superlong 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 coronavirushit economy.

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

In the superlong zone, the 20year JGB yield was flat at 0.385.

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

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

The fiveyear yield was unchanged at minus 0.115.

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

Japans 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 COVID19 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…

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