JGB yields flat ahead of Fed policy decision

  • 12/14/2021
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Japanese government bond yields were mostly steady on Tuesday ahead of meetings by the U.S. Federal Reserve and other central banks, as concerns over faster tapering offset demand for safe-haven debt amid fears surrounding the Omicron variant. The 10-year JGB yield was flat at 0.045% and the 20-year JGB yield was steady at 0.450%. The 30-year JGB yield was flat at 0.660%. Investors remained cautious ahead of a meeting of the U.S. Federal Reserve, which is expected to signal a faster wind-down of asset purchases, while the European Central Bank, the Bank of England and the Bank of Japan will also meet to discuss normalizing their own monetary policies. Appetite for risk assets was hurt after British Prime Minister Boris Johnson warned of a "tidal wave" of new Omicron cases, and the World Health Organization said it poses a "very high" global risk. The 40-year JGBs were not traded and their yield remained at 0.705%. Yields on shorter ends fell, with the two-year JGB yield losing 0.5 basis point to minus 0.115% and the five-year yield slipping 0.5 basis point to minus 0.100%. Benchmark 10-year JGB futures rose 0.05 point to 152.02, with a trading volume of 15,299 lots. Reporting by Tokyo markets team Our Standards: The Thomson Reuters Trust Principles.

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