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Reuters staff
TOKYO, Nov 5 (Reuters) – Prices of Japanese government bonds (JGB) rose on Thursday, following overnight jumps in US Treasuries as the count of US elections pointed to divided government and raised expectations of lower stimulus spending.
Biden predicted a U.S. election victory over President Donald Trump after pivotal victories in Michigan and Wisconsin, but the risk of a protracted contested election remains as the Republican incumbent sought to offset a narrow path to reelection with demands and demands for a recount.
Yields on U.S. Treasuries, which had risen to highs in several months before the election results, tumbled as prospects for a Democratic sweep faded, along with massive stimulus spending, which had collapsed. discounted in the market.
Benchmark 10-year JGB futures rose 0.19 points to 152.17, with trading volume of 21,876 lots, while 10-year JGB yield lost 1.5 basis points to 0.020%.
In the super long zone, the 20-year JGB yield fell 2.5 basis points to 0.380%.
The 30-year JGB yield fell 3 basis points to 0.610%, away from the highest level since January 2019 of 0.645% reached in the previous session.
The 40-year JGB yield fell 3.5 basis points to 0.640%.
At the shorter end of the curve, the two-year JGB yield fell 1 basis point to minus 0.135%, while the five-year yield fell 1.5 basis points to minus 0.115%.
The Bank of Japan increased the amount of bonds from 1 to 3 and 3 to 5 years in Thursday’s regular operation to 500 billion yen ($ 4.79 billion) and 420 billion yen, respectively, but kept the 25-40 year bonds unchanged. ($ 1 = 104.3000 yen) (Tokyo Markets Team Report; Uttaresh.V edition)
