January 26, 2018 / 6:43 AM / 7 months ago

JGBs tick up after Trump's dollar comments buoy U.S. Treasuries

TOKYO, Jan 26 (Reuters) - Japanese government bond prices firmed on Friday, tracking gains in U.S. bonds following a strong 7-year note auction and comments from U.S. President Donald Trump that he wanted a strong dollar.

The 10-year JGB futures price rose 0.08 point to 150.42 , and marked the first weekly gain in nine.

The market has been pressured by a rise in global bond yields on the back of solid economic growth and reduction in the Bank of Japan’s buying in long-dated bonds early this month.

Still, the cumulative losses during the past eight weeks were relatively small, because of the BOJ’s policy to peg the 10-year yield around zero percent.

The 10-year cash JGB yield dipped 0.5 basis point to 0.075 percent. The 20-year yield dipped 1.0 basis point to 0.580 percent, while the 30-year yield dropped 1.0 basis point to 0.810 percent.

JGBs gained as U.S. Treasuries bounced back after Trump’s dollar comments, which contradicted with remarks by Treasury Secretary Steven Mnuchin a day earlier.

The market showed no reaction to Japan’s inflation data, which showed consumer prices rose 0.9 percent in December as expected. (Reporting by Hideyuki Sano; Editing by Subhranshu Sahu)

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