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JGB yields fall to track U.S. Treasury yields lower
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JGB yields fall to track U.S. Treasury yields lower
Nov 3, 2024 2:39 PM

TOKYO, Oct 30 (Reuters) - Japanese government bond (JGB)

yields fell on Wednesday, tracking U.S. Treasury yields lower,

as the market awaited the outcome of the Bank of Japan's policy

meeting.

The 10-year JGB yield fell 1 basis point (bp)

to 0.96%. Benchmark 10-year JGB futures rose 0.14 yen

to 143.99.

Benchmark 10-year U.S. Treasury yields hit a nearly

four-month high on Tuesday on investor wariness to buy the debt

before next week's U.S. presidential election, but dipped later

in the day after a strong seven-year note auction.

"The JGB yields on mid-to-long term bonds fell as JGB

futures rose after U.S. Treasury yields declined overnight,"

said Miki Den, senior Japan rate strategist at SMBC Nikko

Securities.

The five-year yield fell 1.5 bps to 0.58% and

the two-year JGB yield fell 0.5 bp to 0.445%.

The BOJ will conclude a two-day policy meeting on Thursday,

and the market widely expects that it will keep its policy

unchanged.

The 20-year JGB yield rose 1 bp to 1.815% and

the 30-year JGB yield rose 1.5 bps to 2.22%.

"Yields on super-long dated bonds are on an upward trend as

the market is concerned about the fiscal expansion. Whichever

parties will form a new coalition, the government spending is

seen expanding," said Den.

Japan's ruling coalition's failure to retain a majority in

Sunday's lower house elections will likely force the Liberal

Democratic Party to court smaller opposition parties such as the

Democratic Party for the People (DPP) to stay in power.

The 40-year JGBs were not traded.

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