TOKYO: Japanese government bond (JGB) prices fell on Tuesday, following a decline in U.S. Treasuries on optimism that the United States and China may be drawing closer to a deal to end their trade dispute.
Safe-haven demand for government debt has declined this week after U.S. President Donald Trump said he may soon sign a deal with Chinese President Xi Jinping to end the seven-month trade war that has slowed global growth and disrupted markets.
The benchmark 10-year cash JGB yield rose half a basis point to minus 0.035 percent, after hitting a seven-week low of minus 0.050 percent on Friday.
In the super-long zone, the 20-year yield rose 1 basis point to 0.415 percent.
The 30-year and 40-year yield added 1.5 basis points each, rising to 0.595 percent and 0.665 percent, respectively.
Ten-year JGB futures were down 0.02 point at 152.85 yen with a volume of 18,822 lots by late afternoon trade.
U.S. Treasury yields rose on Monday as investors reduced their holdings to make room for a wave of supply and rolled back their safe-haven exposure to government debt on optimism of a U.S.-China trade deal.
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