JGBs fall as risk appetite returns, 10-year sale in focus

Credit: REUTERS/THOMAS WHITE

Japanese government bond prices fell on Monday due to a return of risk appetite and the yen's pullback, curbing demand for safe-haven debt.

TOKYO, Aug 3 (Reuters) - Japanese government bond prices fell on Monday due to a return of risk appetite and the yen's pullback, curbing demand for safe-haven debt.

Benchmark 10-year JGB futures 2JGBv1 lost 0.20 point to 152.17, a level unseen since July 15, with a trading volume of 15,181 lots.

In the cash bond market, the 10-year JGB yield JP10YTN=JBTC gained 1.5 basis points to 0.025%.

In the middle end of the yield curve, the five-year yield JP5YTN=JBTC added 1.5 basis points to minus 0.115%.

In the super-long zone, the 20-year JGB yield JP20YTN=JBTC rose 2 basis points to 0.400%, while the 40-year JGB yield JP40YTN=JBTC rose 2.5 basis points to 0.570%.

The 30-year JGB yield JP30YTN=JBTC and the two-year JGB yield JP2YTN=JBTC were untraded.

Investors also adjusted their positions ahead of the 10-year debt sale on Tuesday.

The Nikkei stock average .N225 rose above 2% to snap six straight days of losses as market sentiment was lifted by a softer yen and Wall Street's gain on upbeat earnings.

In the currency market, the dollar steadied on the yen at 105.89 yen JPY=, moving away from a 4-1/2 low marked last week.

(Reporting by the Tokyo Markets Team; Editing by Rashmi Aich)

((eimi.yamamitsu@thomsonreuters.com;))

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