TOKYO: Japanese government bond prices nudged up on Thursday due to rising global growth concerns, pushing the benchmark 10-year yield to the lowest level in a year and a half.
The 10-year JGB yield dipped to as low as 0.470 percent, falling below a yield support around 0.485 percent - a level below which investors had been reluctant to buy.
The move reflected flight-to-quality buying of bonds in the United States and Europe as investors grew wary of possible loss of momentum in the global economy.
US retail sales data disappointed investors who had been falling back on the strength of consumption in the world's largest economy as a main driver of global growth when economies in Europe, Japan and China are showing signs of slowdown.
In abnormally volatile trade, the 10-year US Treasuries yield plunged to as low as 1.865 percent, its lowest since May 2014, at one point on Wednesday, compared with 2.500 percent at the start of this month.
"It's a bit scary. There's negative sentiment on the economy on a global scale," said a trader at a Japanese brokerage firm.
Buying interest appeared strong in 20-year maturities, the trader said. The 20-year JGB yield hit a 1-1/2-year low of 1.310 percent and last stood at 1.315 percent, down 1.0 basis point from Wednesday.
But market players also said they saw substantial profit-taking in JGBs at current levels, as many investors were still not eager to chase the market higher.
The 10-year JGB futures price rose 0.08 point to 146.33, hitting an intraday record high of 146.42 at one point.-Reuters
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