Japanese government bonds mostly firm, benchmark 10-year yield hits record low

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Tokyo | Published: July 8, 2016 12:37:13 PM

Japanese government bonds mostly firmed on Friday, sending the benchmark yield to a record low, as risk-averse investors continued to seek the safety of government debt.

Japanese government bonds The two-year yield also touched a record low of minus 0.365 percent, and was last down 1 basis point at 0.360 percent. (Reuters)

Japanese government bonds mostly firmed on Friday, sending the benchmark yield to a record low, as risk-averse investors continued to seek the safety of government debt.

Market turmoil triggered by Britain’s vote last month to exit the European Union has sent investors piling into the safety of sovereign bonds in recent weeks, pressuring their yields.

Some investors also believe the Bank of Japan could cut a key rate further into negative territory as early as this month’s two-day meeting ending on July 29, to blunt the impact of the recently strong yen on the country’s economy.

The 10-year JGB yield fell 0.5 basis point to minus 0.285 percent, after earlier notching a fresh low of minus 0.300 percent.

The two-year yield also touched a record low of minus 0.365 percent, and was last down 1 basis point at 0.360 percent.

But superlong JGB yields edged higher, with the 20-year yield added half a basis point to 0.040 percent after it dipped into negative levels earlier this week for the first time ever.

The 30-year yield rose 2 basis points to 0.085 percent .

September 10-year futures ended up 0.09 point at 153.67 after earlier scaling a record peak of 153.81.

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