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JGBs firm, taking cues from stocks, U.S. Treasuries
November 15, 2017 / 7:05 AM / in 9 days

JGBs firm, taking cues from stocks, U.S. Treasuries

TOKYO, Nov 15 (Reuters) - Japanese government bonds firmed on Wednesday, bolstered by rising risk aversion as equities slumped and also taking their cue from a flattening U.S. Treasury yield curve.

The benchmark 10-year cash JGB yield shed half a basis point to 0.040 percent.

The 10-year JGB futures contract finished 0.08 point higher at 150.79.

The curve flattened slightly, with the 20-year JGB yield and the 30-year JGB yield both shedding one basis point to 0.575 percent and 0.815 percent, respectively.

The Nikkei stock average ended down 1.6 percent.

The JGB market largely shrugged off data released early in the session that showed Japan’s economy posted its longest period of uninterrupted growth in more than a decade, expanding at a 1.4 percent annualised rate in the July-September quarter. That was slightly above the median estimate for annualised growth of 1.3 percent.

U.S. Treasury two-year note yields touched a nine-year high on Tuesday, while those on long-dated debt fell as the yield curve flattened for a second straight day and investors braced for the next tightening by the Federal Reserve in December.

Reporting by Tokyo markets team; Editing by Biju Dwarakanath

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