June 3, 2019 / 4:48 AM / 3 months ago

JGBs steady on trade war, growth slowdown fears

TOKYO, June 3 (Reuters) - Japanese government bond (JGB) prices held largely steady on Monday as demand for safe-haven assets remained firm amid growing fears about U.S.-China trade war and growth slowdown.

Yields on the long-end of the curve, though, edged up after the Japanese central bank on Friday made a tweak its monthly JGB buying plan.

The benchmark 10-year JGB yield held steady at minus 0.100%. If the yield dips to minus 0.105%, it would hit its lowest since mid-August 2016.

Ten-year JGB futures were flat at 153.20, with a trading volume of 20,133 lots by mid-afternoon trade.

The Bank of Japan (BOJ) said on Friday it plans to conduct buying of JGBs with more than 10 to 40 years to maturity three times this month, compared to four times for the past six months.

The 30-year yield gained half a basis point to 0.455%, while the 40-year yield was up 1.0 basis point at 0.510% following the BOJ’s announcement.

The BOJ on Friday also said it will buy 100 to 300 billion yen ($0.92 billion - $2.77 billion) of 10-25 year JGBs each time, compared to 100 to 250 billion yen until now.

U.S. stock futures and Asian share markets slipped to multi-month lows on Monday on worries intensifying Sino-U.S. tensions and Washington’s new tariff threats against Mexico could tip the global economy into a recession. ($1 = 108.15 yen) (Reporting by Tokyo Markets team; Editing by Rashmi Aich)

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