On September 27, 2021, Japan’s benchmark 10-year government bond yield remained unchanged as investors managed to scoop up the securities that tracked US Treasuries higher earlier in the Asian session.
The 10-year JGB yield was flat at 0.050%, while the 10-year JGB futures moved slightly at 151.62, recording a trading volume of 20,440 lots in the process. Notably, the 10-year Treasury is at its peak since early July at 1.46%, with talk that the reflation trade may be back on as markets brace for the end of super-cheap money.
Yields on the longer-term Japanese securities gained considerably ahead of an auction of the 40-year notes, with the 40-year JGB yield rising one basis point to reach 0.760%. On the other hand, the 20-year JGB yield gained 0.5 basis points to reach 0.445%, and the 30-year JGB yield gained one basis point to 0.680%.
The 2-year JGB yield remained unchanged at negative 0.130%, while the 5-year yield was flat at minus 0.095%. The Japanese markets look ahead awaiting the next price action as the Evergrande saga evolves. With more economies opening up after months of lockdowns from the COVID-19 pandemic, the future looks better.