JGB yields pull back from 3-year lows as risk appetite returns

Madiha Shakeel August 30, 2019

TOKYO: Japanese government bond yields pulled back from three-year lows on Friday as investor appetite for risk assets returned amid an uptick in U.S.-China trade optimism, curbing demand for safe-haven debt.

The five-year JGB yield nudged up half a basis point to minus 0.355%, moving away from a three-year trough of minus 0.365% brushed midweek.

The benchmark 10-year JGB yield was 1 basis point higher at minus 0.280%, after stooping to minus 0.290% the previous day, its lowest since July 2016.

JGB yields were also nudged higher after the Bank of Japan trimmed the amount of five- to 10-year bonds it offered to buy at its regular operation to 400 billion yen ($3.80 billion) from 450 billion yen in an attempt to slow the recent slide in yields.

JGB yields had fallen across the curve to multi-year lows, tracking a steep fall in global peers as U.S.-China trade war concerns gripped the broader markets through much of the week.

Global stocks gained on Friday as the United States and China returned to the negotiating table to resolve their tariff dispute.

Copyright Reuters, 2019

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