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JGBs steady to slightly firmer as risk appetite ebbs

Credit: REUTERS/Thomas White

Japanese government bond (JGB) prices traded slightly higher on Monday as investors turned to the safe-haven instrument after talks about a U.S. coronavirus stimulus package dragged on.

TOKYO, Oct 26 (Reuters) - Japanese government bond (JGB) prices traded slightly higher on Monday as investors turned to the safe-haven instrument after talks about a U.S. coronavirus stimulus package dragged on.

Benchmark 10-year JGB futures 2JGBv1 rose 0.11 point to 151.93, with a trading volume of 18,715 lots, while the 10-year JGB yield JP10YTN=JBTC inched down half a basis point to 0.030%.

In the super-long zone, the 20-year JGB yield JP20YTN=JBTC edged half a basis point lower to 0.405%, while the 30-year JGB yield JP30YTN=JBTC and the 40-year JGB yield JP40YTN=JBTC stood flat at 0.640% and 0.670%, respectively.

Yields on the shorter end of the market were unchanged, with both the two-year JGB yield JP2YTN=JBTC and the five-year yield JP5YTN=JBTC flat at minus 0.135% and minus 0.100%, respectively.

Investors cautiously eyed the U.S. stimulus negotiations even as the presidential election day neared.

U.S. House Speaker Nancy Pelosi and President Donald Trump have been trading accusations for days about who needed to act in order to cement new coronavirus aid before Nov. 3.

Meanwhile, the Bank of Japan on Monday maintained the size of all of its JGB buying operations, as expected by market participants.

(Reporting by Tokyo markets team; editing by Uttaresh.V)

((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.

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