June 16, 2020 / 8:01 AM / 2 months ago

JGBs retreat after Nikkei jumps, BOJ keeps policy unchanged

June 16 (Reuters) - Japanese government bond (JGB) prices broadly dropped on Tuesday as a robust rebound in Tokyo shares on U.S. Federal Reserve’s bond buying programme dented the appeal of safe-haven debt investments.

Benchmark 10-year JGB futures dropped 0.23 point to 152.00, with a trading volume of 18,005 lots.

The key 10-year cash JGB yield added 1.5 basis points (bps) to 0.015%.

The 20-year and the 30-year yields gained 2.5 bps each to 0.385% and 0.540%, respectively, while the 40-year yield rose 2 pbs to 0.555%.

At the shorter end of the market, the two-year added half a basis point to minus 0.165% and the five-year yields gained 1.5 bps to minus 0.105%.

On the Tokyo stock exchange, the benchmark Nikkei average surged 4.9%, its biggest one-day gain since March 25, as the Fed widened its corporate bond purchasing programme to support financial markets.

The market showed little reaction to the outcome of Tuesday’s Bank of Japan’s (BOJ) meeting, which decided to keep monetary policy unchanged as widely expected. (Reporting by Tokyo Markets Team; Editing by Rashmi Aich)

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