May 23, 2019 / 4:01 AM / 3 months ago

JGBs gain as risk aversion lifts investor demand for bonds

TOKYO, May 23 (Reuters) - Japanese government bond prices edged higher on Thursday as risk aversion in the broader markets due to persistent U.S.-China trade fears and Brexit concerns increased investor demand for safe-haven debt.

The five-year and 10-year JGB yields each declined 0.5 basis point to minus 0.170% and minus 0.060%, respectively.

The 30-year yield also fell half a basis point, to 0.515%.

Reports that the United States could impose restrictions on Chinese technology company Hikvision renewed market jitters about trade on Wednesday, reversing a relief rally that followed Washington’s move to temporary ease curbs against Huawei Technology Co Ltd.

A deepening Brexit crisis also sapped investor risk appetite. Pressure on British Prime Minister Theresa May to resign increased after her new Brexit gambit backfired and as a key ally resigned from her cabinet.

Equities sagged broadly, with Japan’s Nikkei slipping 0.7%. (Reporting by the Tokyo markets team Editing by Jacqueline Wong)

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