TOKYO, March 14 (Reuters) - Japanese government bond futures rose on Wednesday tracking overnight gains in U.S. Treasuries, although concerns about the potential impact of an ongoing political scandal roiling Tokyo curbed the gains.
June 10-year JGB futures gained 0.03 point to 150.70. A decline in Japan’s Nikkei also supported JGB futures.
Activity was subdued elsewhere in the JGB market, with the 10-year and 30-year bond yields unchanged at 0.045 percent and 0.755 percent, respectively.
Japanese Prime Minister Shinzo Abe and his ally, Finance minister Taro Aso, have came under increased fire over suspicions of cronyism involving the sale of government land.
Bond market participants think JGB yields could rise if the scandal hurts Abe’s ability to continue pursuing his economic policies, which include aggressive monetary easing.
Treasury prices gained overnight after the sudden dismissal of U.S. Secretary of State Rex Tillerson hurt broader risk sentiment and lifted demand for safe-haven debt. (Reporting by the Tokyo markets team; Editing by Sunil Nair)