JGBs retreat as Nikkei gains; U.S.-China trade deal awaited

TOKYO, Jan 14 (Reuters) – Japanese government bond (JGB) prices fell across maturities on Tuesday, taking cues from a rally in Tokyo stocks and overnight losses in U.S. Treasuries, a day before the signing of an Phase 1 trade deal between the world’s two biggest economies.

Benchmark 10-year JGB futures fell 0.24 point to 151.76, with a trading volume of 18,973 lots.

The key 10-year cash JGB yield rose 1.5 basis points (bps) to 0.010%.

In the super-long zone, the 20-year and the 30-year yields rose one basis point each to 0.300% and 0.450%, respectively, while the 40-year yield edged up half a basis point to 0.480%.

At the shorter end of the curve, the two-year yield rose one basis point to minus 0.130% and the five-year yield rose 1.5 bps to minus 0.095%.

On the Tokyo stock market, the benchmark Nikkei average advanced 0.7% to its four-week high, with signs of goodwill between Beijing and Washington supporting investors’ risk appetite.

U.S. Treasury prices dropped on Monday as investors shifted their focus from Middle East tensions to the U.S.-China deal. (Reporting by the Tokyo Markets Team; Editing by Shailesh Kuber)

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