Markets

Longer-dated JGBs rise tracking US Treasuries

Published October 10, 2018 Updated October 10, 2018 11:23am

The December 10-year JGB futures closed 0.04 point higher at 150.05, with a trading volume of 16,126 lots.

The yield on the benchmark 10-year JGB slipped 0.5 basis point to 0.150 percent, off a 2-1/2-year high of 0.155 percent last hit on Tuesday.

The 20-year JGB yield and the 30-year JGB yield both lost half a basis point to 0.680 and 0.940 percent, respectively.

The five-year JGB yield was flat at minus 0.065 percent.

The 40-year JGBs and two-year JGBs were untraded.

The Bank of Japan offered to buy government bonds with more than five to 10 years to maturity at its regular debt-purchasing operation on Wednesday, leaving the offer amounts unchanged from its previous operation.

Many market players expect the BOJ to avoid trying to keep a tab on rising yields until the 10-year JGB yield nears 0.200 percent.

US long-dated Treasuries gained on Tuesday, as investors took a respite from selling bonds that took yields to multi-year highs following recent economic data and on interest rate prospects over the next year and a half.

Copyright Reuters, 2018