Japanese government bond prices edged lower on Friday as equities rallied and investors digested the European Central Bank's stimulus efforts. Japan's Nikkei average rose to a 3-1/2 month high on hopes of a economic rebound. In the global bond market, German bund and U.S. Treasury yields jumped on Thursday, as the ECB boosted its emergency bond purchases.
The Bank of Japan is likely to maintain this month its projection that the economy will gradually recover from the damage wrought by the coronavirus pandemic in the latter half of this year, sources said.
Yields on Japanese government bonds gained in line with U.S. Treasuries on Thursday, with the benchmark futures dropping to its lowest since late March. Benchmark 10-year JGB futures fell 0.29 point to 151.76, with a trading volume of 23,209 lots, marking the lowest since March 26.
Japanese government bond prices were steady to slightly lower on Wednesday, as a rise in equities reduced the appeal of safe-haven assets. Local stocks rallied to a more than three-month high on Wednesday, underpinned by a weaker yen and a jump in automaker stocks. Some investors also remained on the sidelines ahead of an auction of 700 billion yen worth of 30-year JGBs on Thursday.
* Ex-Japan Asia-Pacific index hits 3-month high. * Hopes of recovery from epidemic leads short-covering in stocks. * U.S. yield curve steepens. * Asian stock markets: https://tmsnrt.rs/2zpUAr4. By Hideyuki Sano and David Henry.
* Dollar index fell about 5% since mid-March. * Safe-haven Japanese yen trades weaker. * Australian dollar rises to highest since January. * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh. By Olga Cotaga. LONDON, June 2 - The euro reached an 11-week high on Tuesday as the dollar lost ground, with investors maintaining their hopes for a global economic recovery.
Japanese shares hit a more than three-month high on Tuesday as hopes for a global economic recovery bolstered expectations for a rebound in corporate earnings, with more countries gradually reopening after coronavirus-related lockdowns. The Nikkei index ended 1.19% higher at 22,325.61 points after earlier rising to its highest level since Feb. 26.
Japanese shares hit a more than three-month high on Tuesday, as hopes for global economic recovery with more countries gradually reopening after coronavirus-related lockdowns bolstered expectations for corporate earnings.
News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.
PDF’s require Adobe® Reader® and will open in a new window.
