JGBs Rise on SafeHarbour Flows, Strong Auction Demand

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TOKYO, March 24 (Reuters) – Japanese government bond futures and prices on cash bonds rose on Wednesday as concerns over restrictions on economic activity in France and Germany increased the appeal of holding safe-harbour assets.

Investors shifted money out of equities and into bonds as risk appetite was dampened.


An auction of six-month bills earlier on Wednesday drew strong demand, which traders cited as a supportive factor for bond prices.


Benchmark 10-year JGB futures rose 0.17 point to 151.43, with a trading volume of 12,373 lots.


The 10-year JGB yield fell 1 basis point to 0.065%. The 20-year JGB yield fell 1.5 basis points to 0.430%.


The 30-year JGB yield fell 0.5 basis point to 0.615%.


At the long end of the yield curve, the 40-year JGB yield fell 1.5 basis points to 0.655%.


Japan’s finance ministry will auction 40-year bonds on Thursday, which will be an important test of investor demand for bonds with long durations.


The five-year yield fell 1 basis point to minus 0.105%, but the two-year JGB yield was unchanged at minus 0.140%.


(Reporting by the Tokyo markets team; Editing by Amy Caren Daniel)


Source: Reuters

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