JGBs edge higher on coronavirus, U.S. stimulus worries

Credit: REUTERS/Thomas White

Prices of Japanese government bonds edged higher on Wednesday as coronavirus cases surged at an alarming pace in the United States and Europe, while uncertainty over a stimulus deal in Washington also weighed on risk sentiment.

TOKYO, Oct 28 (Reuters) - Prices of Japanese government bonds edged higher on Wednesday as coronavirus cases surged at an alarming pace in the United States and Europe, while uncertainty over a stimulus deal in Washington also weighed on risk sentiment.

Benchmark 10-year JGB futures 2JGBv1 rose 0.12 point to 152.12, with a trading volume of 18,076 lots, while the 10-year JGB yield JP10YTN=JBTC inched down half-a-basis point to 0.020%.

The 20-year JGB yield JP20YTN=JBTC, the 30-year JGB yield JP30YTN=JBTC and the 40-year JGB yield JP40YTN=JBTC fell half-a-basis point each to 0.400%, 0.625% and 0.655%, respectively.

At the shorter end of the curve, the two-year JGB yield JP2YTN=JBTC stood flat at minus 0.130%, while the five-year yield JP5YTN=JBTC lost 1 basis point to minus 0.110%.

France, Poland, Russia, Sweden, the United States and other countries have registered record numbers of coronavirus infections in recent days as winter approached the Northern Hemisphere, boosting the allure of safe-haven assets.

Sentiment took a hit after U.S. President Donald Trump acknowledged that a coronavirus economic relief deal would likely come after the Nov. 3 election.

On the home front, the Bank of Japan is likely to keep monetary settings unchanged at its two-day policy meeting, which is scheduled to end on Thursday.

(Reporting by Tokyo markets team, Editing by Sherry Jacob-Phillips)

((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.

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