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Ten-year JGB yields edge higher; markets eye U.S. jobs data

reuters.com · 09/02/2021 02:03
Ten-year JGB yields edge higher; markets eye U.S. jobs data

- Yields on 10-year Japanese government bonds ticked higher on Thursday after a successful auction of the notes, though trading was tepid as investors awaited a key U.S. jobs report due this week to gauge Federal Reserve's decision on tapering stimulus.

The 10-year JGB yield JP10YTN=JBTC was up 0.5 basis point at 0.030%, as of 0549 GMT, while benchmark 10-year JGB futures 2JGBv1 rose 0.04 point to 152.09, with a trading volume of 18,276 lots.

"Looking at the yield curve, the 10-year zone holds some attractiveness, and looks solid from the standpoint of carry demand," a market participant at a domestic securities firm said.

Yields on five- JP5YTN=JBTC, 20- JP20YTN=JBTC and 30-year JGBs were all flat at minus 0.110%, 0.405% and 0.645%, respectively.

The two-year note JP2YTN=JBTC was untraded, but last yielded minus 0.130%.

Meanwhile, a strong result from the monthly U.S. non-farm payrolls report could spur the Federal Reserve to an earlier tapering of bond buying.

The median forecast of 80 economists polled by Reuters is for 728,000 jobs to have been created in August, though the forecast range varies enormously and stretches from 375,000 to over a million.

(Reporting by Tokyo markets team; Editing by Sherry Jacob-Phillips)