JGBs slip marginally on brighter global outlook

The market showed no reaction to the Bank of Japan's expected decision to keep interest rates on hold. The 20-
19 Dec, 2019
  • The market showed no reaction to the Bank of Japan's expected decision to keep interest rates on hold.
  • The 20-year JGB yield rose 0.5 basis point to 0.290pc and the 30-year yield rose 0.5 basis point to 0.415pc.
  • Benchmark 10-year JGB futures fell 0.19 point to 152.03, with thin trading volume of 12,853 lots by late afternoon trade.

The market showed no reaction to the Bank of Japan's expected decision to keep interest rates on hold.

Benchmark 10-year JGB futures fell 0.19 point to 152.03, with thin trading volume of 12,853 lots by late afternoon trade.

The 10-year JGB yield rose 1 basis point to minus 0.010pc, one basis point below its nine-month high of zero percent touched earlier this month.

The 20-year JGB yield rose 0.5 basis point to 0.290pc and the 30-year yield rose 0.5 basis point to 0.415pc.

At the shorter end of the market, the two-year JGB yield rose 1.5 basis points to minus 0.110pc, while the five-year yield rose 1.5 basis points to minus 0.095pc.

US bond prices fell on Wednesday as investors shrugged off the likely impeachment of US President Donald Trump and focused on positive economic signs.

Sweden's central bank is expected to end its five-year experiment with negative interest rates when it will announce its policy decision on Thursday.

Such a move could stoke debate in Japan and elsewhere on how much negative interest rates have been helping the economy, some market players said.

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