JGB yields fall on fading U.S. stimulus hopes, higher virus cases

Credit: REUTERS/Thomas White

Yields on most Japanese government bonds (JGBs) fell on Thursday as dwindling hopes for an additional round of U.S. fiscal stimulus and a second wave of coronavirus infections in Europe made investors risk-averse.

TOKYO, Oct 15 (Reuters) - Yields on most Japanese government bonds (JGBs) fell on Thursday as dwindling hopes for an additional round of U.S. fiscal stimulus and a second wave of coronavirus infections in Europe made investors risk-averse.

Investors sought the safety of holding government debt after U.S. Treasury Secretary Steve Mnuchin said reaching a compromise with the Democrats on a fiscal stimulus was unlikely before elections on Nov. 3.

Meanwhile, Britain introduced a new lockdown system, France imposed curfews, and other European nations were closing schools to stop the spread of the novel coronavirus.

Benchmark 10-year JGB futures 2JGBv1 rose 0.07 point to 152.04, with a trading volume of 13,114 lots.

The 10-year JGB yield JP10YTN=JBTC was flat at 0.025%. The 20-year JGB yield JP20YTN=JBTC fell 0.5 basis point to 0.405%.

The 30-year JGB yield JP30YTN=JBTC fell 0.5 basis point to 0.635%.

At the long end of the curve, the 40-year JGB yield JP40YTN=JBTC fell 1 basis point to 0.660%.

The five-year yield JP5YTN=JBTC fell 0.5 basis point to minus 0.110%.

At the short end, the two-year JGB yield JP2YTN=JBTC was unchanged at 0.140%.

(Reporting by the Tokyo markets team; editing by Uttaresh.V)

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

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