Since 1975
  • facebook
  • twitter
  • instagram
  • Home
  • JGBs gain as China virus anxiety grips investors

JGBs gain as China virus anxiety grips investors

Japanese money currency exchange indices and forex trading stock market graph. (Shutterstock)
Japanese money currency exchange indices and forex trading stock market graph. (Shutterstock)
Short Url:
21 Jan 2020 03:01:20 GMT9
21 Jan 2020 03:01:20 GMT9

 Japanese government bond prices gained on Tuesday, as risk sentiment soured on worries that a new virus strain in China that has quickly spread to other countries could disrupt the region's economy.

Benchmark 10-year JGB futures rose 0.16 point to 152.10, while the yield on the benchmark 10-year cash JGBs fell 1.5 basis points to minus 0.010%.

It was the lowest level in nearly two weeks, although it as been stuck in a relatively narrow range.

The 20-year JGB yield fell 2 basis points to 0.300%, while the 30-year yield fell 2 basis points to 0.450%.

While the extent of the possible economic damage from the coronavirus is hard to gauge, its quick spread within and beyond China has made investors cautious ahead of the Lunar New Year, when hundreds of millions of Chinese prepared to travel.

Gripped by fear of potential pandemic, the market largely shrugged off the Bank of Japan's decision to keep its monetary policy on hold and to revise up its forecast of Japan's economic growth.

At the shorter end of the market, the five-year yield fell 1 basis point to minus 0.110% while the two-year JGB yield was flat at minus 0.130%. 

Reuters

Most Popular
Recommended

return to top