TOKYO, Nov.11 (Reuters) – Most Japanese government bond prices edged down Wednesday, following overnight losses on U.S. Treasuries, as news of a promising COVID-19 vaccine and Hopes of a global economic recovery continued to weigh on market sentiment.
Benchmark 10-year JGB futures fell 0.07 points to 151.85, trading volume at 18,236 lots, while the 10-year JGB yield edged up half a point. 0.035% base.
The 20-year JGB yield held steady at 0.405%, while the 30-year JGB yield and 40-year JGB yield gained half a basis point each at 0.650% and 0.685%, respectively.
At the shorter end of the market, the two-year JGB yield rose 1 basis point to minus 0.135%, while the five-year yield edged up half a basis point to minus 0.100%.
The Bank of Japan maintained the size of its JGB purchase, purchasing one- to three-year notes worth 500 billion yen ($ 4.75 billion) as well as maturities of three to five and from five to ten years worth 420 billion yen each.
Meanwhile, the market did little to react after the BOJ on Tuesday unveiled a program that offers rate hikes to domestic lenders to consolidate and help revitalize regional economies.
Overnight, the US Treasury yield curve steepened as traders consolidated Monday’s strong gains, with the spread between two-year and 10-year notes peaking since February 2018 ($ 1 = 105,2200 yen) (Tokyo Markets Team Report; Edited by Rashmi Aich)