TOKYO: Japanese government bond prices shot up on Monday, with the benchmark 10-year yield edging near its all-time low hit three years ago, after a sharp escalation in Sino-U.S. trade tensions sent investors scurrying for safer assets.
The darkening global economic outlook saw the Bank of Japan refraining from trimming its bond buying in an operation on Monday even as the 10-year yield fell further below the BOJ's policy target levels.
Benchmark 10-year JGB futures price rose as much as 0.51 point to 155.37, hitting a record high.
The 10-year JGB yield fell 4.5 basis points to minus 0.285%, near the record low of minus 0.30% hit in 2016.
The 20-year JGB yield fell 5.5 basis points to 0.045%, matching a three-year low touched earlier this month while the 30-year JGB yield fell 5.5 basis points to 0.150%.
The two-year JGB yield fell 2 basis points to minus 0.320 percent while the five-year yield fell 3 basis points to minus 0.360%.
The BOJ bought 200 billion yen of JGBs with more than ten to 40 years to maturity, the same amount as its previous operation.
Global bond prices have rallied on Monday after U.S. President Donald Trump on Friday announced an additional duty on some $550 billion of targeted Chinese goods, and said he was ordering U.S. companies to look at ways to close their operations in China.
U.S. bond yields have plunged in Asia on Monday, with the 10-year Treasuries yield dropping 7 basis points to 1.451% , its lowest in three years.
The U.S. yield curve is inverted, with the 10-year yield slipping below the two-year yield, which fell also 7 basis points to 1.453%.
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