TOKYO: Japanese government bonds edged down on Monday, taking their cue from U.S. Treasuries, with benchmark 10-year JGB futures and cash bonds creeping down to their lowest levels since Sept. 21.
The benchmark 10-year JGB yield added 1.5 basis point (bp) to minus 0.020 percent, while benchmark 10-year JGB futures were down 0.19 point at 151.13 in afternoon trade.
The 10-year yield has traded in negative territory since the Bank of Japan announced its current monetary policy on Sept. 21: to guide the 10-year yield around zero percent. On that date, it spiked as high as 0.005 percent before slipping back beneath zero.
In the superlong zone, the 20-year JGB yield added 1 bp to 0.405 percent, while the 30-year yield rose 1.5 bps to 0.540 percent.
The 10-year Treasury note yield logged a 10-month high of 2.210 percent in Asian trading.
While U.S. cash bond markets were closed on Friday for the U.S. Veterans Day holiday, Treasury futures declined to 10-month lows on Friday as bond investors worried that the Trump administration would enact policies that increase inflation, which reduces the value of debt.
Meanwhile, data out early on Monday showed Japan's economic growth beat economists' forecasts in the July-September period, expanding for a third straight quarter as exports recovered. Gross domestic product expanded by an annualised 2.2 percent in the third quarter, faster than the 0.9 percent increase markets had expected.
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