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JGBs Track U.S. Treasuries Higher after Jobs Data

TOKYO, Nov 8 (Reuters) - Japanese government bond prices ticked up on Monday, taking cues from gains in U.S. Treasuries late last week, even after U.S. jobs data pointed to a strong recovery in the economy.

Many market players expect a limited rise in JGB issuance as media reports suggest the government plans to carry over unused funds from last year’s budget as part of a fresh economic stimulus package worth more than 30 trillion yen ($265 billion).

Benchmark 10-year JGB futures ticked up 0.02 points to 151.85, rising as high as 151.97, their highest level since early September.

The yield on the benchmark 10-year JGB fell 0.5 basis points to 0.055%, while the 30-year JGB yield fell 0.5 basis points to 0.670%.

The moves reflected the strength in U.S. Treasuries. The 10-year Treasuries yield fell to as low as 1.436% on Friday, its lowest level since late September.

“While the U.S. jobs data was strong, it wasn’t so strong as to change the market’s already hyped rate hike expectations,” said Takenobu Nakashima, chief rates strategist at Nomura Securities.

At the shorter end, the two-year JGB yield fell 1 basis point to minus 0.120%.

(Reporting by Japan Markets Team; Editing by Ramakrishnan M.)

Source: Reuters


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