JGBs Slip on Debt Supply Worry; 30, 40Year Yields Jump

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June 24 (Reuters) – Japanese government bond (JGB) prices edged lower on Wednesday, weighed down by worries about a possible increase in debt issuance next month, with 30-year and 40-year yields hitting their highest in 14 months.

Super-long bond yields have risen steadily in the past few weeks, especially since Bank of Japan Governor Haruhiko Kuroda said on June 16 that he did not think super-long yields had risen much, compared with those of global peers.


The longest 40-year cash debt yield advanced 1.5 basis points (bps) to 0.615%, a level unseen since late April, 2019. The 30-year bond yield gained 1.5 bps to 0.585%, also its highest since late April last year.


The benchmark 10-year and the 20-year JGB yields added half a basis point each to 0.010% and 0.395%, respectively.


At the shorter end of the market, the two-year and five-year yields also rose half a basis point each to minus 0.155% and minus 0.110%, respectively.


Elsewhere, key 10-year JGB futures dropped 0.05 point to 152.12, with a trading volume of 11,660 lots.


Reporting by Tokyo Markets Team; Editing by Jacqueline Wong


Source: Reuters

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