JGB yields tumble, 10-year yield hits record low

TOKYO: Japanese government bond prices gained on Wednesday as tumbling oil prices stoked concerns of disinflation globally, sending the 10-year JGB yield to record lows.

The 10-year JGB fell to 0.265 percent, less than half of a peak of 0.535 percent hit just less than two months ago. It last traded at 0.280 percent, down 0.5 basis point from Tuesday.

Longer maturities saw sharper moves, with the 20-year yield falling 8.5 basis points at one point to 0.880 percent before stepping back to 0.940 percent.

Trading in superlong maturities are turning volatile in a sign of a lack of liquidity in the market, as the Bank of Japan has gobbled up a large amount of bonds as the main pillar of its stimulus.

Global bond yields have fallen as plummeting oil prices prompted investors to shift some money to the safety of bonds from stocks.

Halving of oil prices since last year has also depressed inflation in many countries. The euro zone data due later in the day is expected to show the currency bloc indeed slipped into deflation in December.