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JGBs supported as Nikkei falls, super long yields hit 1-year low
January 26, 2016 / 4:51 AM / 2 years ago

JGBs supported as Nikkei falls, super long yields hit 1-year low

TOKYO, Jan 26 (Reuters) - Japanese government bond prices rose on Tuesday as Tokyo stocks fell more than 2percent, increasing the allure of safe-haven debt.

March 10-year JGB futures rose 0.02 point to 149.52. The 30-year JGB yield slipped to 1.165 percent, its lowest since January 2015.

Super long JGB yields have been edging lower this month as the Bank of Japan has increased the amount of bonds it purchases in those maturities under its regular debt-buying scheme.

Speculation that the central bank will further increase the amount of super long JGBs it purchases if it opts for more monetary easing at its Jan. 28-29 policy meeting have also helped push down yields.

“Stocks are under pressure and with the market expecting the BOJ to purchase more super long bonds if it eases, there are not many sellers out there,” said Takafumi Yamawaki, chief fixed income strategist at JP Morgan Securities in Tokyo.

Speculation is growing that the BOJ could announce further easing as early as this week as oil prices tumble, putting its 2 percent inflation targer further out of reach.

The Nikkei surrendered the previous day’s gains and fell 2 percent on Tuesday as crude oil prices resumed falling and soured investor sentiment. (Reporting by Shinichi Saoshiro; Editing by Kim Coghill)

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