JGB yields hit fresh 3-year lows on economic, Brexit concerns

Credit: REUTERS/THOMAS WHITE

Japanese government bond yields slipped to fresh three-year lows on Thursday as persisting global recession concerns, stemming from intensifying U.S.-China trade tensions and the prospect of a no-deal Brexit, drove investors to safe-haven assets.

TOKYO, Aug 29 (Reuters) - Japanese government bond yields slipped to fresh three-year lows on Thursday as persisting global recession concerns, stemming from intensifying U.S.-China trade tensions and the prospect of a no-deal Brexit, drove investors to safe-haven assets.

The 30-year yield JP30YTN=JBTC was down 1 basis point at 0.150%, its lowest since July 2016, feeling a downward pull with its U.S. counterpart falling to a record low.

The 10-year JGB yield JP10YTN=JBTC was down 1 basis point at minus 0.280% after stooping to minus 0.285% the previous day, its lowest since July 2016.

With government bonds firmly in demand, Thursday's 2 trillion yen ($18.98 billion) two-year JGB auction attracted ample buyers.

The bid-to-cover ratio, a gauge of demand, rose to 5.40 from 4.71 at the previous sale last month.

($1 = 105.3900 yen)

(Reporting by the Tokyo markets team; editing by Gopakumar Warrier)

((shinichi.saoshiro@thomsonreuters.com; +813-6441-1774))

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

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