April 11, 2019 / 5:44 AM / 2 months ago

JGBs firm after U.S. Fed, ECB strike dovish stance

TOKYO, April 11 (Reuters) - Japanese government bond prices were mostly firmer on Thursday, with the 40-year yield hitting a 2-1/2-year low, as the U.S. Federal Reserve and the European Central Bank signalled steady interest rates amid a slowing global economy.

The benchmark 10-year cash JGB yield fell half a basis point to minus 0.065 percent.

In the super-long zone, the 40-year yield shed two basis points to 0.525 percent, its lowest level since early October 2016.

The 30-year fell 1.5 basis points to 0.510 percent, while the 20-year yield dropped half a basis point to 0.340 percent.

Ten-year JGB futures eased 0.01 points to 152.94, with a trading volume of 22,791 lots by late afternoon trade.

U.S. Treasury yields also slid on Wednesday, as tame underlying U.S. inflation data and dovish Fed minutes reinforced expectations that the Fed would hold interest rates steady or cut them once by the end of the year.

Lower U.S. yields were also in line with falls in the European bond market after the ECB affirmed its easing bias in the midst of downside risks to the eurozone economy. (Reporting by Tokyo Markets Team; Editing by Shreejay Sinha)

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