JGBs slip on economic optimism, 10-yr yield hits 0.1%

TOKYO, Feb 19 (Reuters) – Japanese government bond prices edged down on Friday, pushing up the benchmark 10-year bond yield to its highest since November 2018, on rising optimism over economic recovery from the pandemic.

Rising concerns about inflation put pressure on bond prices in the United States, while investors are also wary the Bank of Japan could signal it is ready to allow bond yields to rise further at its policy review next month.

Benchmark 10-year JGB futures fell 0.11 point to 151.19, with a trading volume of 27,617 lots.

The 10-year JGB yield rose 1 basis point to 0.100%.

The 20-year JGB yield rose 1 basis point to 0.495% while the 30-year yield was flat at 0.675%.

Short-term bond yields have risen as well, with the two-year yield rising 0.5 basis point to minus 0.120% and the five-year yield gaining 0.5 basis point to minus 0.080%.

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