JGBs mostly flat as traders eye U.S. political risk

TOKYO, Oct 22 (Reuters) - Yields on Japanese government bonds were little changed on Thursday as traders avoided making big bets due to uncertainty over U.S. economic stimulus and caution ahead of U.S. presidential election on Nov. 3.

An auction of six-month bills earlier on Thursday saw weak demand, which raised concerns about investor appetite for fixed-income assets around the end of the year and next year in March, dealers said.

Investors are also monitoring a steepening in the U.S. Treasury yield curve but are reluctant to make big moves before a debate between Republican U.S. President Donald Trump and Democrat challenger Joe Biden later on Thursday.

Benchmark 10-year JGB futures fell 0.04 point to 151.93, with a trading volume of 16,536 lots.

The 10-year JGB yield was flat at 0.030%. The 20-year JGB yield was flat at 0.405%.

The 30-year JGB yield rose 1 basis point to 0.635%.

At the very long end of the curve, the 40-year JGB yield rose 1.5 basis points to 0.665%.

The five-year yield was flat at minus 0.105%.

At the short end, the two-year JGB yield was flat at minus 0.135%. (Reporting by the Tokyo markets team; Editing by Aditya Soni)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

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.