10-year JGB yield moves to zero, followed by Treasury yields on the rise

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TOKYO, Aug. 5 (Reuters) – Japanese government bond yields edged higher on Thursday as US Treasury yields rose, but movements were limited ahead of a crucial US jobs report .

The 10-year JGB yield rose 0.5 basis points to 0.005%, after dipping to zero on Wednesday for the first time since mid-December.

Benchmark 10-year JGB futures fell 0.11 points to 152.38, with volume traded at 17,670 lots.

Ten-year Treasury yields also edged up to 1.902% on Thursday, extending a rise from Wednesday, when they also fell to 1.127%, a level not seen since early February.

“There is a bit of a feeling in the market that the decline in US yields has overtaken, and a strong impression of the wage bill could trigger a move towards higher yields,” said a market player in a securities firm. national.

The 20-year and 30-year JGB yields also rose 0.5 basis points each, to 0.380% and 0.630%, respectively.

The five-year JGB yield held steady at minus 0.135%, while the two-year yield fell 0.5 basis points to minus 0.140%.

The US Federal Reserve has made the recovery of the labor market a precondition for the removal of monetary stimulus.

The economist’s median forecast for Friday’s nonfarm wage report is an increase of 870,000 jobs, but the range of estimates extends from 350,000 to 1.6 million. (Tokyo Markets Team Report; Editing by Rashmi Aich)

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