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JGBs dip on revived trade hopes, retain gains on-week

Credit: REUTERS/THOMAS WHITE

Japanese government bond prices dipped on Friday on revived hopes of a U.S.-China trade deal, though the market appeared to be finding some floor as it ended the week firmer after a massive sell-off last week.

TOKYO, Nov 15 (Reuters) - Japanese government bond prices dipped on Friday on revived hopes of a U.S.-China trade deal, though the market appeared to be finding some floor as it ended the week firmer after a massive sell-off last week.

JGBs were dented by improved risk appetite after White House economic adviser Larry Kudlow said the United States and China are getting close to a trade agreement.

Benchmark 10-year JGB futures 2JGBv1 fell 0.07 point to 153.05, failing to retain earlier gains, though the contract was up 0.14 point on the week. It dropped 1.49 point last week, the biggest in more than a decade.

The benchmark 10-year cash JGB yield JP10YTN=JBTC was flat at minus 0.075%, off a seven-month high of minus 0.030% touched on Tuesday.

Longer maturities fared worse, with the 20-year JGB yield JP20YTN=JBTC rising 0.5 basis point to 0.300%, while the 30-year yield JP30YTN=JBTC was up 1 basis point at 0.455%.

The BOJ maintained the amount of buying in those maturities on Friday as expected.

The two-year JGB yield JP2YTN=JBTC rose 0.5 basis point to minus 0.200%, while the five-year yield JP5YTN=JBTC advanced 1 basis point to minus 0.185%.

(Reporting by Tokyo Markets Team, Editing by Sherry Jacob-Phillips)

((hideyuki.sano@thomsonreuters.com; +81 3 4563 2768))

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