Japanese bond prices rise on Sino-U.S. trade war woes, solid 20-year auction

Credit: REUTERS/THOMAS WHITE

Japanese government bond prices rose on Wednesday as conflicting signals on the U.S.-China trade talks boosted demand for safe-haven assets.

By Stanley White

TOKYO, Nov 20 (Reuters) - Japanese government bond prices rose on Wednesday as conflicting signals on the U.S.-China trade talks boosted demand for safe-haven assets.

Bond prices also got a boost after an auction of 20-year debt was met with solid demand from primary dealers, easing concerns about the market's capacity to digest issuance of longer-dated notes.

Benchmark 10-year JGB futures 2JGBv1 rose 0.16 point to 153.46, with a trading volume of 18,536 lots.

The 10-year JGB yield JP10YTN=JBTC fell 1.5 basis points to minus 0.110%.

The 20-year JGB yield JP20YTN=JBTC fell 2 bps to 0.260%, while the 30-year JGB yield JP30YTN=JBTC declined 1 bp to 0.420%.

In the middle of the yield curve, the five-year yield JP5YTN=JBTC fell 1 bp to minus 0.220%.

At the short end, the two-year JGB yield JP2YTN=JBTC was unchanged at minus 0.210%.

The prospect for progress in trade talks between Beijing and Washington seemed to dim when the U.S. Senate unanimously passed legislation aimed at protecting human rights in Hong Kong and China condemned it, vowing to take the steps necessary to safeguard its sovereignty and security.

(Reporting by the Tokyo markets team; Editing by Subhranshu Sahu)

((stanley.white@tr.com; +81 (0)3 4563 2799; twitter.com/stanleywhite1 ;))

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