JGBs slide on profit-taking after yields hit major lows
TOKYO, July 20 |
TOKYO, July 20 (Reuters) - Japanese government bond prices edged down on Friday as market players took profit after the 10-year yield hit a nine-year low the previous day.
* The 10-year JGB yield stood at 0.745 percent . That was 0.5 basis point higher than a nine-year low of 0.740 percent hit on Thursday and 1.0 basis point above Thursday's settlement level based on indicative levels at 0600 GMT, of 0.735 percent, though there was no trades at that level.
* Still, the 10-year yield was down 8.5 basis points, helped by a fall in global bond yields on worries about a slowdown in the world economy.
* "So far this month, the 10-year cash bonds have had no "lose" day, with their yield up on nine sessions and flat on four sessions. That, I have to say, is a bit too strong," said Tadashi Matsukawa, the head of fixed income investment at PineBridge Investments.
* "The 10-year yield will rise to at least around 0.75 percent. It might rise to around 0.80 percent but I'm less sure. If it does, it will be a wonderful opportunity to buy," he added.
* Longer-dated bonds, which have outperformed shorter ones in the market's rally in recent weeks, fell more, putting a brake on flattening in the yield curve for now.
* The 20-year yield rose 1.5 basis point to 1.530 percent , edging up from a two-year low of 1.515 percent hit on Thursday while the 30-year yield went up as much to 1.730 percent.
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