JGBs fall in line with U.S. Treasuries

Credit: REUTERS/Thomas White

Japanese government bond prices fell on Friday, in line with overnight losses in U.S. Treasuries, on hopes that lawmakers are close to striking a deal on new fiscal stimulus.

TOKYO, Oct 23 (Reuters) - Japanese government bond prices fell on Friday, in line with overnight losses in U.S. Treasuries, on hopes that lawmakers are close to striking a deal on new fiscal stimulus.

Benchmark 10-year JGB futures 2JGBv1 fell 0.15 point to 151.83, having hit its two-week low in early trade, with a trading volume of 21,492 lots.

The 10-year JGB yield JP10YTN=JBTC, meanwhile, gained half a basis point to 0.035%.

Yields in the super-long zone marked their highest levels since Oct. 14.

The 20-year JGB yield JP20YTN=JBTC added half a basis point to 0.410%.

The 30-year JGB yield JP30YTN=JBTC rose 1 basis point to 0.640%, while the 40-year JGB yield JP40YTN=JBTC climbed 1.5 basis points to 0.670%.

At the shorter end of the curve, the two-year JGB yield JP2YTN=JBTC inched up half a basis point to minus 0.135%.

The five-year yield JP5YTN=JBTC rose 1 basis point to minus 0.095%, after hitting its highest level unseen since Sept. 8.

Overnight, benchmark U.S. Treasury yields rose to four-month high and the yield curve steepened as U.S. House Speaker Nancy Pelosi said negotiators were making progress in talks with the Trump administration for another round of COVID-19 aid and that legislation could be hammered out "pretty soon."

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

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

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