JGB yields tick up after Nikkei report on larger stimulus

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TOKYO, Nov 18 (Businesshala) – Japanese government bond yields rose higher on Thursday after Prime Minister Fumio Kishida’s stimulus package reported daily fiscal spending could total 55.7 trillion yen ($488 billion).

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The figure was much larger than the 30 trillion-40 trillion yen that many investors had expected, thus raising concerns the government may issue more bonds to finance the package.

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Benchmark 10-year JGB futures fell 0.09 points to 151.53, with relatively heavy trading volume at 35,667 lots as the Nikkei report helped turn the market upside down.

Earlier on Thursday, the strong 20-year JGB results held supported the market, pushing futures to 151.73.

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In the cash bond market, the 10-year JGB yield rose 1 basis point to 0.080%, its highest level in two weeks.

The 30-year JGB yield rose 0.5 basis points to 0.685%, while the 40-year yield rose 1 basis point to a three-week high of 0.740%.

Shorter yields also climbed, with the benchmark two-year yield up 0.5 basis point minus 0.125% and the five-year yield 1 basis point minus 0.075% higher.

$1 = 114.18 yen (Reporting by Hideyuki Sano); Editing by Sherry Jacob-Phillips

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