JGBs Steady to Firmer as Stocks Slide, Global Bonds Steady

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TOKYO, May 17 Reuters Japanese government bond JGB prices were steady to slightly firmer on Monday as a fall in domestic stock prices and stabilising U.S. and European bond markets underpinned the market.

Benchmark 10year JGB futures rose 0.07 point to 151.42, although trading volume was thin at 10,372 lots.

The 10year JGB yield fell 0.5 basis point to 0.075, while the 30year JGB yield was flat at 0.650.

Benchmarks for other major maturities, such as two, five, and twentyyear bonds, were all untraded, pointing to lack of enthusiasm in trading.

An auction of 200 billion yen 1.83 billion inflationlinked 10year JGBs attracted strong demand, amid growing inflation concerns in the United States and elsewhere, even though inflation is seen low in Japan.

The offer attracted bids 3.82 times the offer, higher than bidtocover of 3.07 in the previous auction.

In the U.S. bond market on Friday, Treasury yields slid after U.S. retail sales unexpectedly stalled in April as the boost from government stimulus checks faded.

1 109.19 yen

Reporting by Tokyo Markets Team; editing by Uttaresh.V

Source Reuters

 

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