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Most JGBs slip in line with U.S. Treasuries

TOKYO, Nov 11 (Reuters) - Most Japanese government bond prices inched lower on Wednesday tracking overnight losses in U.S. Treasuries, as news about a promising COVID-19 vaccine and hopes for global economic recovery continued to weigh on market sentiment.

Benchmark 10-year JGB futures fell 0.07 point to 151.85, with a trading volume of 18,236 lots, while the 10-year JGB yield edged up half a basis point to 0.035%.

The 20-year JGB yield stood flat at 0.405%, while the 30-year JGB yield and the 40-year JGB yield gained half a basis point each to 0.650% and 0.685%, respectively.

At the shorter end of the market, the two-year JGB yield rose 1 basis point to minus 0.135%, while the five-year yield inched up half a basis point to minus 0.100%.

The Bank of Japan maintained the size of its JGB purchase, buying one-to-three year notes worth 500 billion yen ($4.75 billion) as well as three-to-five and five-to-ten year maturities worth 420 billion yen each.

Separately, the market reacted little after the BOJ on Tuesday unveiled a scheme that offers rate boost to domestic lenders to consolidate and help revitalise regional economies.

Overnight, U.S. Treasury yield curve steepened as traders consolidated Monday’s strong gains, with the spread between two-year and 10-year notes rising to its widest since February 2018. ($1 = 105.2200 yen) (Reporting by Tokyo markets team; Editing by Rashmi Aich)

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