December 3, 2018 / 5:53 AM / 6 months ago

Super-long JGBs dip as risk-off sentiment eases after China-US trade truce

TOKYO, Dec 3 (Reuters) - Super-long Japanese government bonds (JGBs) edged lower on Monday as the risk-off sentiment that gripped investors last week subsided following a temporary truce on trade war between the world’s two largest economies.

China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating as the two sides try again to bridge their differences with fresh talks aimed at reaching a deal within 90 days.

In the super-long zone, the 20-year, the 30-year and the 40-year yields rose half a basis point each to 0.590 percent, 0.815 percent and 0.970 percent, respectively.

Meanwhile, the benchmark 10-year sector outperformed, with the yield dropping 0.5 basis point to 0.080 percent, after the Bank of Japan said on Friday it would buy 10-year bonds on Wednesday, just one day after the auction.

Some had expected the BOJ to stop buying 10-year JGBs one day after the auction, following its decision in October to delay its buying in other maturities.

Ten-year JGB futures gained 0.07 point to 151.24, after rising to a 14-1/2-month high the previous trading day, with a trading volume of 25,305 lots by late afternoon trade. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)

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