JGBs track global peers higher as low risk appetite lifts bonds

Credit: REUTERS/Thomas White

Japanese government bond prices rose on Wednesday, tracking a surge in global peers, as receding investor risk appetite lifted demand for safe-haven debt.

TOKYO, July 3 (Reuters) - Japanese government bond prices rose on Wednesday, tracking a surge in global peers, as receding investor risk appetite lifted demand for safe-haven debt.

The five-year JGB yield JP5YTN=JBTC fell 1.5 basis points to minus 0.255% and the 10-year yield JP10YTN=JBTC also declined 1.5 basis points to minus 0.150%.

The 20-year yield JP20YTN=JBTC slid 2 basis points to 0.220%.

Longer-dated JGB yields declined even as the Bank of Japan reduced the amount of 10- to 25-year bonds it offered to buy at Wednesday's regular operation to 180 billion yen ($1.67 billion) from the previous 200 billion.

The reduction by the BOJ was in line with the tweak it announced last week to its JGB purchase plan for July.

U.S. Treasury yields fell to their lowest levels since November 2016 as fading hopes for any near-term Sino-U.S. trade deal revived safe-haven demand, while dovish-sounding comments from Bank of England Governor Mark Carney drove British gilt yields to a 2-1/2-year trough.

($1 = 107.6000 yen)

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

((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging: shinichi.saoshiro.reuters.com@reuters.net +813-6441-1774))

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