JGBs firm on cue from US Treasury yields

17 Apr, 2017

The benchmark 10-year JGB yield was half a basis point lower on the day at 0.005 percent, while 10-year JGB futures ended up 0.06 point at 151.15. Earlier in the session, futures hit 151.21, their highest level since mid-November.

The 20-year JGB yield shed 1.5 basis points to 0.545 percent , matching its lowest level on Dec. 22, while the 30-year JGB yield fell 2.5 basis points to 0.735 percent , its lowest since mid-January.

The benchmark U.S. Treasury yield wallowed at five-month lows, catching up to global yields after the U.S. bond market was closed late last week to observe Good Friday.

The 10-year U.S. yield slipped as low as 2.198 percent and last stood at 2.210 percent, down from the U.S. close of 2.228 percent on Thursday.

U.S. economic data on Friday showed retail sales dropped more than expected last month as annual core inflation slowed to 2.0 percent, the smallest advance since November 2015.

On Monday, the BOJ offered to buy 450 billion yen ($4.16 billion) of five- to 10-year JGBs, in line with the amount it offered to purchase in that zone in its previous buying operations. It also offered to buy 100 billion yen of floating-rate JGBs linked to the consumer price index.

Copyright Reuters, 2017
 

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