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JGBs Up as Coronavirus Effect Energizes Equities Auction

Japanese government bond (JGB) rates advanced comprehensively on Tuesday, as a skid in equities expanded the demand of the risk-off debt after Apple Inc cautioned on quarterly income due to the coronavirus pandemic in China. 

japanPhoto: Flickr

Domestic shares tumbled to fourteen-day lows on Tuesday, hauled down by tech organizations as Apple said iPhone creation and request in China eased back because of the infection outbreak. 

Benchmark 10-year Japanese government bond futures gained 0.21 points to 152.79 in mid-evening exchange. The yield on the benchmark 10-year money Japanese government bonds skidded 2 bps to minus 0.060 percent. 

The five-year yield lost 1.5 bps to minus 0.150 percent, while the two-year Japanese government bond yield slipped half of a bp to minus 0.150 percent. 

The super-long zone stuck to this same pattern, with the 20-year yield dropping 2 bps to 0.220 percent and the 30-year yield losing 2.5 basis points to 0.345 percent. 

Tuesday's 1.9 trillion yen ($17.3 billion) 5-year JGB sell-off drew sound traders' interest. The sell-off bid-to-cover proportion, a measure of interest, was 4.49, a tad higher than 4.48 at the past auction a month ago.

Source: Reuters

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