JGB yields fall on hopes of potential GPIF allocation shift
TLT•Yield moves and market drivers
- The 10-year JGB yield
JP10YTN=JBTCfell as much as 2.5 basis points (bps) to 2.735%. The 20-year JGB yieldJP20YTN=JBTCfell 4 bps to 3.710%. Yields move inversely to bond prices. - Japanese government bond prices rose sharply on Friday after Finance Minister Satsuki Katayama said that the government would explore measures to encourage pension funds, including the GPIF, to increase investments in domestic financial assets.
- "The yields fell sharply on Friday but it was because investors bought bonds to cover short positions; it was not aimed at increasing long positions," said Yuki Kimura, a bond strategist at Okasan Securities.
- The market is still weighing uncertainties about the nation's spending and concerns about the Bank of Japan falling behind the curve in coping with inflation, she said.
- The finance ministry will hold a 20-year bond auction in the next session, which will be followed by a 40-year bond auction on July 22.
- The five-year yield
JP5YTN=JBTCfell as much as 1 bp to 1.970%.
JGB yields extend declines on GPIF allocation hopes
Japanese government bond (JGB) yields extended declines on Monday amid hopes of a potential shift in the investment strategy of the world's largest pension fund, Government Pension Investment Fund (GPIF).
Here are a few details:
