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JGB Yields Rise on Vaccine, Report of Yellen as Likely U.S. Treasury Secretary

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TOKYO, Nov 24 Reuters Japanese government bond yields rose on Tuesday as hopes for an inexpensive coronavirus vaccine and expectations for more fiscal spending under a new U.S. government reduced the appeal of holding debt.

AstraZeneca said on Monday its COVID19 vaccine could be up to 90 effective, cheaper to make and easier to ship than rival vaccines, which prompted a shift of money to equities from government debt.

Bond prices also took a hit after a media report said that U.S. Presidentelect Joe Biden will choose former Federal Reserve Chair Janet Yellen as the next Treasury secretary. Yellen is seen as an advocate of more fiscal stimulus.

Benchmark 10year JGB futures fell 0.12 point to 152.10, with a trading volume of 17,269 lots.

The 10year JGB yield rose 1 basis point to 0.020. The 20year JGB yield rose 1.5 basis points to 0.390.

The 30year JGB yield rose 1.5 basis points to 0.640, but the 40year JGB yield was unchanged at 0.660.

At the middle of the yield curve, the fiveyear yield rose 1 basis point to minus 0.120.

At the short end, the twoyear JGB yield rose 0.5 basis point to minus 0.150.

Reporting by the Tokyo markets team; Editing by Vinay Dwivedi

 

Source Reuters

Vaccine Developments Keep Dollar Down; AUD, NZD Strengthen

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