Most JGB yields gain, take cues from U.S. Treasuries

SYDNEY, March 12 (Reuters) – Yields on most Japanese government bonds (JGB) gained on Thursday, in line with U.S. Treasuries overnight, despite steep losses in stocks after the United States suspended travel from virus-hit Europe and the WHO declared the virus a pandemic.

Benchmark 10-year JGB futures dropped 0.40 point to 154.35, with a trading volume of 40,309 lots.

The 10-year cash JGB yield rose one basis point to minus 0.065%.

At the shorter end of the market, the five-year JGB yield gained 1.5 basis points to minus 0.200%, while the two-year yield added one basis point to minus 0.225%.

In the super-long zone, the 20-year yield gained 3 basis points to 0.240% and the 30-year JGB yield added half a basis point to 0.300%.

Bucking the overall trend, the longest 40-year yield dropped two basis points to 0.280%.

U.S. Treasury yields rose on Wednesday after the World Health Organization (WHO) described the virus as a pandemic, adding that Italy and Iran were on the frontline of the disease and other countries would soon join them.

Japanese shares tumbled, with both the Nikkei and the Topix indexes at three-year lows, as U.S. President Donald Trump’s speech sapped market confidence.

Source: Read Full Article