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JGB yields touch over 5-month lows as growth fears keep markets on edge

[TOKYO] Japanese government bond (JGB) prices edged broadly higher on Monday, with the benchmark yield trading at a more than five-month low hit in the previous session, as worries about slower global growth helped boost safe-haven demand for debt.

The yield on benchmark 10-year JGBs fell half a basis point to 0.025 per cent, the lowest since July 2 that was first hit in late Asian trade on Friday.

The super-long zone followed suit, with the 20-year yield and the 30-year yield shedding one basis point each, to 0.540 per cent and 0.770 per cent, respectively.

The five-year yield also dipped 0.5 basis point to minus 0.135 per cent, while the two-year yield was flat at minus 0.155 per cent.

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Asian share markets were cautious after soft economic data from China and Europe added to evidence of cooling global growth and reinforced anxiety over the broadening impact of international trade frictions.

Ten-year March JGB futures rose 0.08 point to 152.10 by midday trade, with a trading volume of 13,167 lots.

The benchmark futures briefly traded at 152.17, their highest since early October 2016, before giving up some gains.

JGB prices took cues from moves in US Treasury yields on Friday, which slipped after poor economic numbers out of Europe and China weighed on sentiment.

REUTERS