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JGBs slip on hopes of coronavirus slowdown; 40-year bonds outperform

08 Apr 2020
Prices of most Japanese government bonds edge lower as coronavirus reaches peak. (Shutterstock)
Prices of most Japanese government bonds edge lower as coronavirus reaches peak. (Shutterstock)
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Updated 08 Apr 2020
08 Apr 2020

Prices of most Japanese government bonds edged lower on Wednesday, as investors’ risk aversion eased slightly on hopes the coronavirus pandemic may be nearing a peak in many developed countries.

Bucking the trend, 40-year bonds held firmer after the new debt sales plan, unveiled by the Japanese government to finance its massive stimulus, showed it will not increase issuance of that maturity.

Trading was still slow, with many investors reluctant to take big risks amid uncertainties over how long the coronavirus will shut down the global economy.

Benchmark 10-year JGB futures fell 0.17 point to 152.05, with a trading volume of 6,539 lots by late afternoon trade.

In the cash bond market, the 10-year JGB yield rose 1 basis point to 0.010%, while the 20-year yield rose 0.5 basis point to 0.315%.

Longer-dated bonds did better, with the 30-year yield flat at 0.445% and the 40-year yield down 0.5 basis point at 0.445%.

Reuters

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