TOKYO, Nov 2 (Reuters) - Japanese government bond prices dipped on Monday, in line with a fall in U.S. bond prices amid rising expectations that the United States would borrow more to finance its coronavirus stimulus package.
While investors expect a large economic package regardless of the outcome of the U.S. presidential election on Tuesday, they think it could become larger if Democrats win both the White House and the two chambers of Congress.
Trade was slow ahead of the U.S. election, with Japanese markets set to be closed on Tuesday for a national holiday.
Benchmark 10-year JGB futures fell 0.05 point to 151.83, with a paltry trading volume of 15,510 lots.
In the cash bond market, the 10-year JGB yield rose 0.5 basis point to 0.040% while the five-year yield rose 0.5 basis point to minus 0.095%.
Longer-dated bonds fare better, supported by bargain-hunting as their yields hover near their highest levels so far this year.
The 20-year JGB yield fell 1 basis point to 0.405% while the 30-year yield fell 0.5 basis point to 0.635%.
Reporting by Tokyo Markets Team; Editing by Devika Syamnath
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