JGB yields follow Treasury yields higher before U.S. jobs data
TOKYO, Aug 6 (Reuters) – Japanese government bond yields ticked higher on Friday, in line with a rise in Treasury yields ahead of a key U.S. jobs report later in the day.
The 10-year JGB yield rose 0.5 basis point to 0.010%, after touching zero on Wednesday for the first time this year.
The 20-year yield rose 1 basis point to 0.390%.
The 10-year Treasury yield rose as high as 1.2380% in Asian trading, from an almost six-month low of 1.1270% hit on Wednesday.
“Along with the rise in U.S. yields, it’s difficult for the 10-year JGB yield to break below zero,” said Ataru Okumura, a strategist at SMBC Nikko Securities.
“Amid the continuous rise in yields, the curve is bear steepening,” he said, referring to a quicker rise in yields for longer-term bonds than shorter-dated paper.
Benchmark 10-year JGB futures fell 0.08 point to 152.3, with a trading volume of 11,514 lots.
The two-, five- and 20-year cash JGBs finished Friday’s session without trading.
The U.S. Federal Reserve has made a labour market recovery a condition for removing monetary stimulus.
The consensus figure among 80 economists in a Reuters survey for jobs created in July is 870,000, but estimates range widely from 350,000 to 1.6 million.
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