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

Credit: REUTERS/Thomas White

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)


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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