TOKYO, Aug 5 (Reuters) - Japanese government bond yields edged higher on Thursday in sympathy with a rise in U.S. Treasury yields, but moves were limited ahead of a crucial U.S. jobs report. The 10-year JGB yield rose 0.5 basis point to 0.005%, after dipping to zero on Wednesday for the first time since mid-December. Benchmark 10-year JGB futures fell 0.11 point to 152.38, with a trading volume of 17,670 lots. Ten-year Treasury yields also edged higher to 1.902% on Thursday, extending a rise from Wednesday, when it also dropped as low as 1.127%, a level not seen since early February. “There’s a bit of a feeling in the market that the decline in U.S. yields has overshot, and a strong payrolls print could trigger a shift to higher yields,” said a market player at a domestic securities firm. The 20-year and 30-year JGB yields also rose 0.5 basis point each, to 0.380% and 0.630%, respectively. The five-year JGB yield was flat at minus 0.135%, while the two-year yield ticked 0.5 basis point lower to minus 0.140%. The U.S. Federal Reserve has made a recovery in the jobs market a precondition for removing monetary stimulus. The median economist forecast for Friday’s non-farm payrolls report is an increase of 870,000 jobs, but the range of estimates stretches from 350,000 to 1.6 million. (Reporting by Tokyo markets team; Editing by Rashmi Aich)
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