TOKYO, Oct 20 (IFR) - Japanese government bond yields pulled back from recent lows on Monday as a rally in Tokyo stocks dented demand for safe-haven debt.
The benchmark 10-year JGB yield rose 1 basis point to 0.475 percent, pulling away from an 18-month low of 0.465 percent struck last week when growth fears buffeted global equities and sent investors to the perceived safety of government bonds.
The two-year yield stood at 0.02 percent after dropping to a record low of 0.005 percent on Friday.
Market participants still expect the two-year yield to remain near record lows as the Bank of Japan’s quantitative easing, through which it buys large amounts of short-term debt, has driven up demand for those maturities.
Tokyo’s Nikkei, which hit a five-month low on Friday, surged 3.4 percent. (Reporting by Masatsugu Hisatsune; Editing by Shri Navaratnam)