JGBs slip on fall in US Treasuries, trade worries mitigate blows

TOKYO: Japanese government bond prices slipped on Tuesday after U.S. Treasuries extended their falls following a run of strong U.S. economic data in recent weeks, though concerns about the Sino-U.S. trade war underpinned the market.

Ten-year JGB futures fell 0.07 point to 150.20 while the 10-year benchmark cash JGB yield rose 0.5 basis point to 0.110 percent.

The 20-year JGB yield rose 0.5 basis point to 0.615 percent while the 30-year JGB yield rose 1 basis point to 0.845 percent.

JGBs dipped as U.S. bond prices have fallen, with the 10-year U.S. Treasuries yield hitting a four-month high above 3 percent on Monday.

Also undermining JGBs, some traders said, were comments from Prime Minister Shinzo Abe last week that the Bank of Japan's ultra-easy policy should not continue forever.

Still, the market was supported by concerns about escalation in trade disputes between the United States and China after U.S. President Donald Trump imposed 10 percent tariffs on about $200 billion worth of Chinese imports.

The Bank of Japan maintained the size of its bond purchases in an operation on Tuesday. The central bank is widely expected to keep its policy on hold in a two-day policy meeting ending on Wednesday.