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JGB yields edge lower on rising coronavirus cases

Credit: REUTERS/Thomas White

Yields on Japanese government bonds slipped on Tuesday, as sentiment was weighed by uncertainty over U.S. stimulus talks and the global economic outlook due to a surge in coronavirus cases.

TOKYO, Oct 27 (Reuters) - Yields on Japanese government bonds slipped on Tuesday, as sentiment was weighed by uncertainty over U.S. stimulus talks and the global economic outlook due to a surge in coronavirus cases.

Benchmark 10-year JGB futures 2JGBv1 rose 0.1 point to 152.03, with a trading volume of 13,091 lots, while the 10-year JGB yield JP10YTN=JBTC fell half a basis point to 0.025%.

Japan's finance ministry conducted a 3 trillion yen two-year JGB sale, drawing an ample investor demand.

The bid-to-cover ratio, a gauge of demand, fell marginally to 3.98 from 4.02 at the previous auction last month.

The auction's tail, or gap between the lowest and accepted prices, was at 0.06.

The five-year yield JP5YTN=JBTC was flat at minus 0.100%.

The 20-year JGB yield JP20YTN=JBTC stood flat at 0.405%, while the 30-year JGB yield JP30YTN=JBTC and the 40-year JGB yield JP40YTN=JBTC inched down half a basis point to 0.635% and 0.665%, respectively.

A wave of coronavirus infections sweeping across the United States, Russia, France and many other countries has clouded the global economic outlook, with record numbers of new cases forcing some countries to impose fresh curbs.

Increasing the appeal of the safe-haven debt was lack of progress on the U.S. coronavirus relief package, although House of Representatives Speaker Nancy Pelosi remained hopeful a deal could be reached before the Nov. 3 elections.

(Reporting by Tokyo markets team; Editing by Amy Caren Daniel)

((eimi.yamamitsu@thomsonreuters.com;))

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

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