BLBG: Japanese Government Bonds Slide as Yields Near One-Month Low Deter Buyers
Japanese bonds fell, snapping the longest winning streak in 10 months, as 10-year yields near the lowest in five weeks deterred buyers.
Benchmark yields climbed on the final trading day of the fiscal first half for Japanese financial institutions and before the Ministry of Finance sells 10-year government debt on Oct. 7.
“Wariness is building about the rapid-paced rally of late,” said Akihiko Inoue, chief strategist in Tokyo at Mizuho Investors Securities Co. “A pause in the decline of U.S. Treasury yields will also induce selling of Japanese government bonds.”
The yield of the benchmark 10-year bond rose two basis points to 0.94 percent as of 2:45 p.m. in Tokyo at Japan Bond Trading Co., the nation’s largest interdealer debt broker. The price of the 1 percent bond due in September 2020 declined 0.184 to 100.546.
Ten-year bond futures for December delivery were little changed at 143.41 at the Tokyo Stock Exchange.
To contact the reporter on this story: Yasuhiko Seki in Tokyo at Yseki5@bloomberg.net
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net
