JGBs steady to slightly firmer as risk appetite ebbs

TOKYO, Oct 26 (Reuters) - Japanese government bond (JGB) prices traded slightly higher on Monday as investors turned to the safe-haven instrument after talks about a U.S. coronavirus stimulus package dragged on.

Benchmark 10-year JGB futures rose 0.11 point to 151.93, with a trading volume of 18,715 lots, while the 10-year JGB yield inched down half a basis point to 0.030%.

In the super-long zone, the 20-year JGB yield edged half a basis point lower to 0.405%, while the 30-year JGB yield and the 40-year JGB yield stood flat at 0.640% and 0.670%, respectively.

Yields on the shorter end of the market were unchanged, with both the two-year JGB yield and the five-year yield flat at minus 0.135% and minus 0.100%, respectively.

Investors cautiously eyed the U.S. stimulus negotiations even as the presidential election day neared.

U.S. House Speaker Nancy Pelosi and President Donald Trump have been trading accusations for days about who needed to act in order to cement new coronavirus aid before Nov. 3.

Meanwhile, the Bank of Japan on Monday maintained the size of all of its JGB buying operations, as expected by market participants. (Reporting by Tokyo markets team; editing by Uttaresh.V)

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.