Markets

JGBs gain as weak equities support safe-haven debt demand

TOKYO: Japanese government bond prices rose on Friday as a decline in Tokyo stocks supported the safe-haven appeal o
Published April 26, 2019

TOKYO: Japanese government bond prices rose on Friday as a decline in Tokyo stocks supported the safe-haven appeal of debt.

The five-year and 10-year JGB yields dropped by 0.5 basis point to minus 0.165 percent and minus 0.040 percent, respectively.

The 20-year yield was down 1 basis point at 0.375 percent .

The mood in the bond market was subdued ahead of Japan's 10-day holiday, starting Saturday, which marks the enthronement of a new emperor.

Near-term market focus was on the Bank of Japan's bond-buying plans for May due for release after the market close on Friday.

The central bank buys JGBs from the market through regular operations as part of its yield curve control scheme, sometimes tweaking the amount of debt it plans to purchase in the upcoming month.

Japan's Nikkei share average dropped to a two-week low on Friday following disappointing earnings from high-tech firms.

Copyright Reuters, 2019

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