TOKYO: Japanese government bond yields pulled back slightly on Friday from two-week highs, as investors bought back the securities following three days of losses, even as concerns lingered about increased issuance to fund a record government stimulus package.
Sentiment was also buoyed by strong demand at a three-month T-bill auction.
“The range hasn’t changed, but after three days of selling, some pressure to buy has built up fairly strongly,” said a market participant at a domestic financial institution. The 10-year JGB yield slipped 0.5 basis point to 0.075% as of 0515GMT after touching 0.08% on Thursday for the first time since Nov. 4.
Benchmark 10-year JGB futures rose 0.1 point to 151.63, with a trading volume of 17,420 lots. The government is set to announce a record $490 billion spending package on Friday, and will compile an extra budget by year-end to fund it.
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