Japanese government bonds (JGBs) advanced in early Tokyo trading on Wednesday, tracking the overnight price gains in US Treasuries, as the two markets often move in tandem.
The day's focus is likely to be on the Ministry of Finance's auction of approximately 600 billion yen ($4 billion) of 30-year JGBs. In a research note, Tomohisa Fujiki of Citi Investment Research said demand at the sale is likely to be driven by life insurance companies. The rate strategist noted that yields should be at a level that makes the debt attractive for regular purchases.
The yield on the benchmark 10-year JGB fell 1.5 basis points to 2.790%, while the 30-year JGB yield dropped 3 basis points to 3.93%.
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