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Long-Term JGB Yields Rise as Part of Global Reflation Trade

TOKYO, Jan 8 (Reuters) - Long-term Japanese government bond yields rose on Friday, tracking a similar move in Treasuries, as prospects of large fiscal spending under incoming U.S. President Joe Biden lifted expectations of higher inflation in the world’s largest economy.

Yields on 30-year bonds were also supported after an auction for the tenor earlier on Friday saw a slight dip in demand compared with the previous auction.

Benchmark 10-year JGB futures dipped 0.04 point to 151.76, with a trading volume of 20,074 lots.

The 10-year JGB yield was flat at 0.035%. The 20-year JGB yield rose 1 basis point to 0.415%.

At the long end of the yield curve, the 30-year JGB yield rose 0.5 basis point to 0.655%, though the 40-year JGB yield was flat at 0.695%.

The five-year yield fell 0.5 basis point to minus 0.110%.

At the short end, the two-year JGB yield fell 0.5 basis point to minus 0.125%.

(Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips)

Source: Reuters


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