July 8, 2019 / 5:22 AM / 4 months ago

JGBs fall as expectations for aggressive Fed rate cuts wane

TOKYO, July 8 (Reuters) - Japanese government bond prices fell on Monday as strong U.S. jobs data for June dampened expectations for aggressive interest rate cuts by the Federal Reserve.

Ten-year JGB futures fell -0.16 point to 153.80, with a trading volume of 14,727 lots.

The 10-year JGB yield rose 1.5 basis points to minus 0.155%.

The 20-year JGB yield rose 1 basis point to 0.205%, while the 30-year JGB yield rose 1.5 basis points to 0.345%.

At the short end of the curve yields on two-year JGBs rose 1 basis point to -0.205%.

U.S. Treasury yields rose across the board on Friday after a bigger-than-expected increase in U.S. non-farm payrolls.

Analysts said the strong jobs report should not stop the Fed from reducing interest rates at its July policy meeting, but it did take a 50-basis-point cut off the table.

Investors will closely analyse Fed Chairman Jerome Powell’s comments when he delivers his semi-annual monetary report before Congress on Wednesday and Thursday to gauge how far the U.S. central bank will lower interest rates. (Reporting by the Tokyo Markets Team; Editing by Rashmi Aich)

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