November 21, 2019 / 7:56 AM / 3 months ago

Long-dated JGBs gain on U.S.-China row over Hong Kong strife

TOKYO, Nov 21 (Reuters) - Long-dated Japanese government bond prices gained on Thursday, as investors switched to safe havens after U.S. legislation on Hong Kong intensified tensions between Washington and Beijing in a fresh blow to hopes of a trade deal before year-end. Shorter maturities, including the benchmark futures contract, were hit by profit-taking as domestic stocks trimmed their losses.

The 20-year yield fell 1.5 basis points to 0.240%, the 30-year yield dropped 2 basis points to 0.390% and the 40-year yield fell 2.5 basis points to 0.420%.

The U.S. House of Representatives on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights, angering Beijing.

The bills came as trade experts and people close to the White House said completion of a “phase one” U.S.-China trade deal could slide into next year.

Buying into shorter end of the market petered out, however, after a recent bull run.

Benchmark 10-year JGB futures fell 0.06 point to 153.42 on trading volume of 29,951 lots.

The key 10-year cash bond yield rose 0.5 basis point to minus 0.110%.

The two-year JGB yield rose 1.5 basis points to minus 0.200% and the five-year yield added 1 basis point to minus 0.210%. (Reporting by Tokyo Markets Team; Editing by Shri Navaratnam)

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