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JGB prices fall as safe-haven appeal fades

Tokyo

JAPANESE government bond (JGB) prices edged down on Monday as gains in Japanese and US equities helped improve investors' risk appetite and dampened the safe-haven appeal of government debt.

The Nikkei share average rose nearly 0.3 per cent and closed at its highest since Dec 19. It tracked Wall Street's gains in the previous session after increased hopes that the US and China would resolve their trade dispute lifted investor sentiment.

The benchmark 10-year JGB yield was flat at 0.005 per cent, while the 30-year yield rose half a basis point to 0.695 per cent. Yields on shorter-dated maturities also edged higher, with the two-year and five-year yields both gaining 0.5 basis point, to minus 0.170 per cent and minus 0.155 per cent, respectively.

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Foreign investors increased their net JGB purchases in December, data from the Japan Securities Dealers' Association showed on Monday.

Foreigners bought a net 4.42 trillion yen (S$54.82 billion) of JGBs, the highest amount on record, according to data going back to April 2004, and up from 2.88 trillion yen in November. REUTERS