JGBs rise as virus impact fuels equities sell-off

Benchmark 10-year JGB futures rose 0.21 point to 152.79 in mid-afternoon trade. The yield on the benchmark 10-
18 Feb, 2020
  • Benchmark 10-year JGB futures rose 0.21 point to 152.79 in mid-afternoon trade.
  • The yield on the benchmark 10-year cash JGBs dropped 2 basis points (bps) to minus 0.060pc.
  • The auction bid-to-cover ratio, a gauge of demand, was 4.49, slightly higher than 4.48 at the previous sale last month.

Local stocks fell to two-week lows on Tuesday, dragged down by tech companies as Apple said iPhone production and demand in China slowed due to the virus outbreak.

Benchmark 10-year JGB futures rose 0.21 point to 152.79 in mid-afternoon trade.

The yield on the benchmark 10-year cash JGBs dropped 2 basis points (bps) to minus 0.060pc.

The five-year yield fell 1.5 basis points to minus 0.150pc, while the two-year JGB yield dropped half a basis point to minus 0.150pc.

The super-long zone followed suit, with the 20-year yield declining 2 basis points to 0.220pc and the 30-year yield losing 2.5 bps to 0.345pc.

Tuesday's 1.9 trillion yen ($17.3 billion) 5-year JGB auction drew healthy investor interest.

The auction bid-to-cover ratio, a gauge of demand, was 4.49, slightly higher than 4.48 at the previous sale last month.

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