JGBs fall in line with U.S. Treasuries

TOKYO, Oct 23 (Reuters) - Japanese government bond prices fell on Friday, in line with overnight losses in U.S. Treasuries, on hopes that lawmakers are close to striking a deal on new fiscal stimulus.

Benchmark 10-year JGB futures fell 0.15 point to 151.83, having hit its two-week low in early trade, with a trading volume of 21,492 lots.

The 10-year JGB yield, meanwhile, gained half a basis point to 0.035%.

Yields in the super-long zone marked their highest levels since Oct. 14.

The 20-year JGB yield added half a basis point to 0.410%.

The 30-year JGB yield rose 1 basis point to 0.640%, while the 40-year JGB yield climbed 1.5 basis points to 0.670%.

At the shorter end of the curve, the two-year JGB yield inched up half a basis point to minus 0.135%.

The five-year yield rose 1 basis point to minus 0.095%, after hitting its highest level unseen since Sept. 8.

Overnight, benchmark U.S. Treasury yields rose to four-month high and the yield curve steepened as U.S. House Speaker Nancy Pelosi said negotiators were making progress in talks with the Trump administration for another round of COVID-19 aid and that legislation could be hammered out "pretty soon." (Reporting by Tokyo Markets Team; Editing by Rashmi Aich)

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