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JGBs tumble as investors lock in gains after rally
March 9, 2016 / 7:13 AM / 2 years ago

JGBs tumble as investors lock in gains after rally

TOKYO, March 9 (Reuters) - Japanese government bonds skidded on Wednesday as investors locked in gains, particularly in the superlong zone, after the previous session’s rally.

The 30-year yield was the biggest mover, adding 20 basis points to 0.715 percent after plunging 21 basis points in the previous session. Its biggest one-day fall in three years pushed it to a life-time low of 0.470 percent.

Tuesday’s spike in prices came after a 30-year auction met solid investor demand.

“I took some profits after buying in the auction yesterday,” said a Tokyo-based fixed income fund manager.

The 20-year yield added 16.5 basis points, while the 40-year yield rose 18 basis points to 0.740 percent.

The benchmark 10-year yield rose 7.5 basis points to minus 0.025 percent, moving away from a record low of minus 0.100 percent set on Tuesday.

March 10-year JGB futures skidded 0.77 point to end at 151.61.

The Bank of Japan offered to buy 450 billion yen ($4.00 billion) 5- to 10-year JGBs, 260 billion yen of 10- to 25-year JGBs and 180 billion yen of JGBs maturing in 25 to 40 years, under its massive asset purchase programme. ($1 = 112.5600 yen) (Reporting by Tokyo markets team; Editing by Shri Navaratnam)

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