Japan's 10-year bonds untraded on Evergrande fears, Fed meeting caution
- The 10-year JGB yield remained at 0.045%, while benchmark 10-year JGB futures rose 0.12 point to 151.83, with a trading volume of only 9,590 lots
TOKYO: Japan's 10-year government bonds were untraded on Tuesday as investors were cautious ahead of the US Federal Reserve's meeting, curbing safe-haven demand for fixed income despite a stock market rout.
The 10-year JGB yield remained at 0.045%, while benchmark 10-year JGB futures rose 0.12 point to 151.83, with a trading volume of only 9,590 lots.
Japanese stocks posted their biggest fall in three months on Tuesday, hit by fears of a potential default by China's Evergrande Group.
But investors refrained from making active bets on debt as they awaited some guidance on the Fed's tapering outlook after it concludes a two-day meeting on Wednesday.
Yields on longer term debt were mixed, with the 20-year JGB yield falling 0.5 basis point to 0.425%, while the 30-year JGB yield was flat at 0.650%.
The 40-year JGB yield rose 0.5 basis point to 0.730%.
The two-year JGB yield fell 0.5 basis point to minus 0.135% and the five-year bonds were untraded with the yield remaining at minus 0.100%.
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