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JGBs rise on expectations for global monetary easing
[TOKYO] Japanese government bond prices rose on Tuesday on expectations that the US Federal Reserve, the European Central Bank and other major central banks will lower interest rates to arrest slowing economic growth.
However, yields at the very long end of the curve erased losses and edged higher after an auction of new 40-year bonds drew slightly less demand compared to the previous auction in May.
Ten-year JGB futures rose 0.04 point to 153.64, with a trading volume of 14,748 lots.
The 10-year JGB yield fell 0.5 basis point to minus 0.145 per cent.
The two-year JGB yield was flat at minus 0.205 per cent.
The 40-year JGB yield erased loses and rose 1 basis point to 0.420 per cent after the auction.
The 30-year JGB yield was flat at 0.375 per cent.
Economists surveyed by Reuters expect the European Central Bank to change its forward guidance on Thursday to pave the way for a rate cut in September.
The US Federal Reserve is widely expected to lower its interest rate target range of 2.25 -2.50 per cent by 25 basis points at a meeting ending July 31.