Japanese government bonds gain with 30 – year yield hitting its lowest in 3 months

Japanese government bonds gain with 30-year yield hitting its lowest in 3 months

Japanese government bonds (JGBs) saw gains on Monday with the yield of 30-year bonds hitting its lowest in 3 months. The drop in its yield level has been due to growing concerns about the new Coronavirus China that has started to spread to other countries.

Benchmark 10-year JGB futures rose 0.26 point to 152.59, climbing to their highest since early December.

The yield on the benchmark 10-year cash JGBs dropped 2 basis points to minus 0.045% after having briefly hit an eight-week low of minus 0.05%.

The yield curve flattened as long-dated bonds with positive yields drew more bids. The 20-year JGB yield has been seen falling by 3 basis points to a two-month low of 0.235%.

The 30-year JGB yield fell 3.5 basis points to 0.370%, a trough last seen on November 5.

The current 40-year JGBs were left untraded by mid-afternoon ahead of an auction of 400 billion Yen for 40-year JGBs on Tuesday.