TOKYO, Feb 24 (Reuters) - Japanese government bond (JGB)
yields fell to multi-week lows on Tuesday, tracking declines in
their U.S. peers overnight, as investors bought safe-haven debt
amid uncertainties over U.S. President Donald Trump's tariff
policy.
The 10-year JGB yield fell to as low as 2.65%
to touch its lowest level since December 30, and was last down
one basis point (bp) to 2.095%.
The 20-year JGB yield fell 4 bps to 2.870%,
its lowest since December 1.
"There is a tailwind in Japan's bond market from last week
but today investors bought JGBs on Trump's losing sight of the
tariff policy," said Katsutoshi Inadome, a senior strategist at
Sumitomo Mitsui Trust Asset Management.
"Uncertainties over the U.S. tariffs prompted investors to
buy JGBs," he said.
U.S. Treasuries recovered on Monday after a selloff in the
previous session, as investors pondered the implications of the
Supreme Court's Friday decision to strike down Trump's sweeping
use of emergency powers to impose tariffs.
Yields on Japan's super-long-dated bonds have been falling
after Prime Minister Sanae Takaichi's landslide election earlier
this month, which gave investors confidence that her government
will not adopt an overly loose fiscal policy, as some opposition
parties had proposed.
Strong demand from foreign investors for JGBs has also
become a support for bond prices. Foreigners were dominant
buyers of JGBs across the curve in January, according to data
from the Japan Securities Dealers Association.
They purchased 2.2 trillion yen ($14.19 billion) of
super-long dated bonds, nearing a record set in April, in the
month where yields on those bonds hit a record high on concerns
about worsening fiscal health.
Yields move inversely to bond prices.
The 30-year yield fell 1.5 bps to 2.870%.
The two-year yield fell 1 bp to 1.24%. The
five-year yield fell 1.5 bps to 1.590%.
($1 = 155.0900 yen)