TOKYO: Medium-dated Japanese government bond yields climbed further from recent lows on Thursday, as planned diplomatic talks between Russia and Ukraine and a break in oil’s steep climb reduced demand for safe havens.
However, superlong JGB yields retreated as solid demand at an auction of 20-year securities boosted demand for superlong debt.
The 10-year yield added 1.5 basis points to 0.175%, as of 0510 GMT, and that on the five-year note rose by the same amount to 0.010%.
Risk sentiment recovered as Russia’s foreign minister arrived in Turkey ahead of planned talks with his Ukrainian counterpart, for what will be the first meeting since Russia invaded two weeks ago in what it called a “special operation” aimed at disarming its neighbour.
Even so, traders warned of continued bond market volatility.
“With the drop in investors’ risk tolerance and the end of the fiscal year approaching, the market is thin and will swing on the smallest buy and sell orders,” said a trader at a domestic securities firm.
“It feels like, depending on the news flow, rough price action is going to continue.”
At the long end, 20-year yields edged up 0.5 basis point to 0.640%, while 30-year and 40-year yields fell by 1 basis point each to 0.855% and 0.895%, respectively.
Two-year notes were yet to trade, and last yielded minus 0.045%. Benchmark 10-year JGB futures fell 0.24 point to 150.59, with a trading volume of 12,596 lots.
Comments
Comments are closed.