JGB yields edge higher on vaccine hopes; BOJ keeps monetary policy steady

Credit: REUTERS/THOMAS WHITE

Japanese government bond yields edged higher on Wednesday, after the Bank of Japan kept monetary policy on hold and as investors focused on positive results from an early-stage trial of a coronavirus vaccine.

By Stanley White

TOKYO, July 15 (Reuters) - Japanese government bond yields edged higher on Wednesday, after the Bank of Japan kept monetary policy on hold and as investors focused on positive results from an early-stage trial of a coronavirus vaccine.

Sentiment for fixed income also weakened as growing signs of economic recovery prompted investors to shift money to equities from the safety of holding government debt.

Benchmark 10-year JGB futures 2JGBv1 fell 0.03 point to 152.11, with a trading volume of 9,509 lots.

The 10-year JGB yield JP10YTN=JBTC rose 0.5 basis point to 0.025%, while the 20-year JGB yield JP20YTN=JBTC rose 1 basis point to 0.430%.

The 30-year JGB yield JP30YTN=JBTC rose 1 basis point to 0.600%.

In the middle of the yield curve, the five-year yield JP5YTN=JBTC rose 0.5 basis point to minus 0.105%.

At the short end, the two-year JGB yield JP2YTN=JBTC was unchanged at minus 0.145%.

The BOJ kept monetary policy steady on Wednesday and maintained its view that the economy would gradually emerge from the coronavirus pandemic's devastating blow, signalling a pause after delivering stimulus twice so far this year.

Japanese government bond prices were also under pressure after a study showed Moderna Inc's MRNA.O experimental coronavirus vaccine is safe and produced an immune response in healthy volunteers.

(Reporting by the Tokyo markets team; Editing by Rashmi Aich)

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MRNA

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More