10-year JGB yields slump to over 4-month low on solid safe-haven demand following global trade tensions

The Japanese 10-year government bond yields slumped to lowest in four months as investors poured into safe-haven instruments amid a slide in riskier equities, following rising tensions over a global trade war, sparked by U.S. President Donald Trump’s tariff plans to be imposed on steel and aluminum exports.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1-1/2 basis points to 0.02 percent, the yield on the long-term 30-year note also slid nearly 1-1/2 basis points to 0.74 percent and the yield on short-term 2-year traded flat at -0.15 percent by 05:50 GMT.

Further, the fact that the Bank of Japan announced outright bond buying operations for medium-term JGBs and inflation-indexed JGBs, as expected, also supported market sentiment, Reuters reported.

Meanwhile, the Nikkei 225 index slumped 4.67 percent to trade at 20,586.50 by 05:55 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 67.01 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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