July 10, 2019 / 5:21 AM / a month ago

JGB futures touch 3-week low as bets on deep U.S. rate cuts fade

TOKYO, July 10 (Reuters) - Japanese government bonds futures touched a three-week low on Wednesday as expectations reduced for deep interest rate cuts from the U.S. Federal Reserve.

Ten-year JGB futures were down 0.13 point at 153.58, with a trading volume of 24,736 lots. Futures at one point fell to 153.55, the lowest since June 18.

The 10-year JGB yield rose 1 basis point to minus 0.135%.

The 20-year JGB yield gained 1.5 basis points to 0.220%, while the 30-year JGB yield rose 1.5 basis points to 0.355%.

The five-year JGB yield climbed 1 basis point to minus 0.220%.

At the short end of the curve, two-year JGB yields rose 1 basis point to minus 0.190%.

Investors have curbed expectations for a 50 basis point interest rate cut at the U.S. Federal Reserve’s meeting this month after better-than-expected data on the U.S. jobs market released last week.

Futures still show investors expect a smaller 25 basis point cut from the Fed to combat sluggish inflation and risks posed by the U.S.-China trade war. (Reporting by the Tokyo Markets Team; Editing by Subhranshu Sahu)

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