January 18, 2017 / 7:05 AM / a year ago

JGBs edge down, taking cue from rising U.S. Treasury yields

TOKYO, Jan 18 (Reuters) - Japanese government bonds edged down on Wednesday, taking their cues from weaker U.S. Treasuries in Asian trading and stronger Japanese stocks.

The 10-year JGB yield added 1 basis point (bp) to 0.055 percent, while 10-year JGB futures edged down 0.06 point to 150.32.

The superlong zone was flat, with the yield on the 20-year JGB at 0.585 percent, and the 30-year yield at 0.735 percent.

Ahead of President-elect Donald Trump’s inauguration on Friday, investors also awaited a speech by U.S. Federal Reserve Chair Janet Yellen later in the global session for possible clues on monetary policy.

San Francisco Federal Reserve Bank President John Williams said on Tuesday that he sees a “good case” for three U.S. rate hikes this year even without any fiscal stimulus, but if the economy accelerates, the Fed would need to raise rates faster.

Fed Governor Lael Brainard on Tuesday added to voices at the U.S. central bank warning that sustained wider budget deficits could fuel inflation.

Investors also awaited the U.S. consumer price index due later on Wednesday. A Reuters survey showed economists expect CPI to have risen 0.3 percent in December from a month earlier, after it gained 0.2 percent in November.

The U.S. 10-year yield stood at 2.343 percent, up from Tuesday’s U.S. close of 2.327 percent, while The Nikkei stock ended ending up 0.4 percent. (Reporting by Tokyo markets team; Editing by Richard Borsuk)

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