JGBs rise tracking gains in U.S. Treasuries

Credit: REUTERS/THOMAS WHITE

Japanese government bond (JGB) prices broadly rose on Friday, tracking overnight gains in U.S. Treasuries amid rising expectations of interest rate cuts by the Federal Reserve.

TOKYO, June 14 (Reuters) - Japanese government bond (JGB) prices broadly rose on Friday, tracking overnight gains in U.S. Treasuries amid rising expectations of interest rate cuts by the Federal Reserve.

The benchmark 10-year JGB yield JP10YTN=JBTC and the 20-year yield JP20YTN=JBTC lost one basis point each, to minus 0.125% and 0.245%, respectively.

Short-dated maturities were a shade stronger, with the two-year yield JP2YTN=JBTC and the five-year yield JP5YTN=JBTC off half-a-basis point each, at minus 0.205% and minus 0.235%, respectively.

Ten-year JGB futures 2JGBv1 ticked up 0.04 points to 153.48, with a trading volume of 14,628 lots by mid-afternoon trade.

The Bank of Japan offered to buy 480 billion yen ($4.4 billion) of five- to 10-year bonds at a regular debt-purchase operation on Friday.

Increased expectations of U.S. central bank rate cuts pulled short-dated yields lower on Thursday, steepening the yield curve ahead of retail sales data later on Friday and the meeting of Fed policymakers next week.

($1 = 108.31 yen)

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

((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink; +81-3-6441-1825; Reuters Messaging: daniel.leussink.thomsonreuters.com@reuters.net))

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