Longer-dated JGBs gain as seasonal investor demand supports

TOKYO: Longer-dated Japanese government bond prices rose on Thursday, supported by steady demand from investors gearing up for the fiscal year-end.

The 30-year JGB yield was down 1 basis point at 0.570 percent, its lowest since December 2016.

The 20-year yield slipped half a basis point to 0.400 percent after touching 0.395 percent, a low not seen since November 2016.

The super longs have drawn demand from institutional investors stocking up before the domestic fiscal year-end in March.

The longer-dated JGBs have also attracted bids as they still offer yields above zero when the benchmark 10-year yield has slipped firmly into the negative. The 10-year yield stood flat at minus 0.040 percent.

Data released on Wednesday by the Japan Securities Dealers Association showed that investors such as large banks, trust banks, life insurers and foreigners were net buyers of super long debt in January.