TOKYO: Japan’s 10-year government bond (JGB) yields fell on Monday, as concerns over the return of COVID-19 restrictions in Europe underpinned demand for safe-haven bonds.

The 10-year JGB yield fell 0.5 basis point to 0.070 percent.

Austria began its fourth lockdown, with neighbouring Germany warning it may follow suit, shutting Christmas markets, bars, cafes and theatres.

However, the impact of the resurgence on the bond market will be limited as the number of deaths in countries such as Germany has not been on the rise so far, a market participant said.

Yields on the shorter-end notes also fell, with the two-year JGB yield slipping 0.5 basis point to minus 0.135 percent and the five-year yield losing 1 basis point to minus 0.090 percent.

The 20-year JGB yield rose 0.5 basis point to 0.465 percent and the 30-year JGB yield rose 1 basis point to 0.680 percent.

The 40-year JGB yield also rose 1 basis point to 0.735 percent.

Benchmark 10-year JGB futures rose 0.07 point to 151.69, with a trading volume of 11,871 lots.

Reuters