JGBs give back gains, follow US Treasuries lower
TOKYO, Oct 22 (Reuters) - Japanese government bonds fell on Thursday, giving back the previous day's gains, after renewed concerns that monetary stimulus may wane and a cautiously optimistic view from the Federal Reserve's Beige Book hit U.S. Treasuries.
* December 10-year JGB futures 2JGBv1 fell 0.19 point to 138.50 after hitting 138.46, their lowest in a month.
* The benchmark 10-year yield JP10YTN=JBTC climbed 1 basis point to 1.355 percent. The 20-year yield rose 1.5 basis points to 2.140 percent JP20YTN=JBTC.
* A drop in Tokyo stocks helped cushion the fall in bonds. The Nikkei stock average .N225 lost 1 percent, dragged lower by a retreat in exporters. [.T]
* Despite the recent rise in yields, bond investors have kept a wait-and-see stance as the market braces for an increase in JGB issuance as the government looks to plug an expected shortfall in tax revenue.
* U.S Treasuries fell on Wednesday after comments from the Bank of England triggered a fresh round of anxiety about the eventual withdrawal of monetary stimulus. A cautiously optimistic view of the economy from the Federal Reserve's Beige Book, a report describing business conditions across the nation, also weighed on Treasuries. [ID:nN21580447] (Reporting by Shinichi Saoshiro; Editing by Chris Gallagher)
