February 28, 2020 / 8:03 AM / a month ago

JGBs rally in line with U.S. Treasuries on coronavirus fears

TOKYO, Feb 28 (Reuters) - Japanese government bond prices advanced on Friday as the coronavirus epidemic spread well beyond Asia prompting a stampede into the safety of government debt.

Benchmark 10-year JGB futures rose 0.41 point to 154.07, while the yield on the key 10-year cash JGBs fell 5 basis points (bps) to minus 0.160%, the lowest in four months.

The five-year yield declined 5 bps to minus 0.265% and the two-year JGB yield fell 4.5 bps to minus 0.255%.

At the longer end of the market, the 20-year JGB yield dropped 5.5 bps to 0.155% and the 30-year JGB yield declined 6 bps to 0.285%, having fallen to a 5-1/2-month low of 0.280% at one point.

The longest 40-year JGB yield declined 6.5 bps to 0.300%.

Investors have flocked to the safety of high-grade bonds, resulting in U.S. Treasury yields plunging, with the benchmark 10-year notes yield hitting a record low of 1.199% in late Asian trade. (Reporting by Tokyo Markets Team; Editing by Amy Caren Daniel)

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