March 17, 2020 / 8:11 AM / 24 days ago

Superlong JGBs drop, tracking losses in U.S. Treasuries

March 17 (Reuters) - Superlong Japanese government bond (JGB) prices dipped on Tuesday, tracking a retreat in U.S. Treasuries since the previous Asian trade session, as investor sentiment remained fragile over how much damages the economy would suffer from the coronavirus.

The benchmark 10-year JGB futures fell 0.32 point to 152.56, with a trading volume of 16,341 lots, while the key 10-year cash JGB yield eased half a basis point to zero percent.

As a rout in global equities and fears over a rise in dollar funding costs incapacitated traders’ ability to absorb risks, trade has become highly erratic, leading to large differences in moves between different maturities, analysts said.

In the superlong zone, the 30-year bond yield rose 1.5 basis points to 0.355% and the 40-year yield gained 2 basis points to 0.350%.

At the shorter end of the market, the five-year debt yield added half a basis point to minus 0.105%, while the two-year yield fell half a basis point to minus 0.200%.

U.S. Treasuries jumped at start of Asian trade on Monday, following the Fed’s surprise rate cut on Sunday, but had been softening since then. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)

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