JGBs slip after Japan PM Suga offers to step down

TOKYO: Japanese government bond (JGBs) prices slipped on Friday after Prime Minister Yoshihide Suga said he would not seek another term as a ruling party leader and hence the prime minister.

His decision boosted risk appetite and lifted Japanese stock prices on hopes the ruling coalition under a new prime minister will compile economic stimulus and easily win a general election later this year.

By late-afternoon trade, benchmark 10-year JGB futures price fell 0.10 point to 151.96.

In the cash bond market, the yield on the benchmark 10-year JGBs rose 0.5 basis point to 0.035%, matching a high on Aug. 11.

At the longer end, the 20-year JGB yield rose 1 basis point to 0.415%, a two-month high, while the 30-year yield rose 0.5 basis point to 0.645%.