Japanese 10 Year Bond Slips Below 0.3%

Japanese government bonds rose further on Tuesday as stocks tumbled worldwide, with a key 10-year JGB yield slipping below 0.3 percent percent for the first time ever.

In late interdealer trading in cash JGBs, the yield on the 336th 10-year issue with a 0.5 percent coupon stood at 0.280 percent, down from 0.320 percent late Monday.

The lead March futures contract on 10-year JGBs ended up 0.21 point at 148.10 on the Osaka Exchange. Volume grew to 33,945 contracts from Monday’s 16,569.

JGBs attracted safe-haven buying as Tokyo stocks plunged to drive down the key Nikkei average below 17,000 with a tumble of 3.02 percent.

Speaking of the risk-off mood, an official of a major securities house said that falling crude oil prices and uncertainty over Greek politics prompted investors to adjust positions.

A foreign securities firm official said the key JGB yield will continue falling for the time being.Speech

via Japan News

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza