TOKYO, Nov 18 (Reuters) - Japanese government bond yields ticked higher on Thursday after the Nikkei business daily reported fiscal spending in the Prime Minister Fumio Kishida’s stimulus package could total 55.7 trillion yen ($488 billion).
The figure was much larger than 30 trillion-40 trillion yen many investors had expected, thus raising concerns the government may issue more bonds to finance the package.
Benchmark 10-year JGB futures fell 0.09 point to 151.53, with a relatively heavy trading volume of 35,667 lots as the Nikkei’s report helped to turn around the market.
Earlier a strong result of a 20-year JGBs held on Thursday supported the market, pushing up the futures to as high as 151.73.
In the cash bond market, the 10-year JGB yield rose 1 basis point to 0.080%, its highest level in two weeks.
The 30-year JGB yield rose 0.5 basis point to 0.685%, while the 40-year yield advanced 1 basis point to a three-week high of 0.740%.
Shorter yields also climbed, with the benchmark two-year yield up 0.5 basis point at minus 0.125% and the five-year yield 1 basis point higher at minus 0.075%.
$1 = 114.18 yen
Reporting by Hideyuki Sano; Editing by Sherry Jacob-Phillips