TOKYO: Japanese government bond prices rose on Thursday, with debt futures hitting a four-month high, supported by a surge in US Treasuries and sliding oil fanning low inflation concerns.
September 10-year JGB futures touched 148.08, the highest since late April. The benchmark 10-year JGB yield fell a basis point to 0.36 percent and towards a three-month low of 0.355 percent touched last week.
On top of external factors, expectations over the Bank of Japan continuing its extensive quantitative easing policy for the foreseeable future also supported debt.
The yield on the lowest accepted price at Thursday's three-month bill auction was 0.0059 percent, matching a record low.
Treasury yields fell on Wednesday on plunging oil prices and as minutes from the US Federal Reserve's July meeting dented prospects for an interest rate hike next month.
US crude oil slumped over 4 percent on Wednesday to hit a 6-1/2-year low as a huge unexpected stockpile build in the United States reinforced concerns about a growing global oil glut.
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