JGBs gain on coronavirus concerns; super longs outperform

TOKYO, July 8 (Reuters) – Japanese government bond prices rose on Wednesday as the resurgence of coronavirus cases around the world underpinned appetite for safe-haven debt at the expense of riskier stocks.

Benchmark 10-year JGB futures gained 0.16 point to 152.03, pushing the 10-year JGB yield 2 basis points lower to 0.015%.

Yields on superlong maturities outperformed, with the 20-year JGB yield down 3.5 basis points at 0.395 and the 30-year JGB yield 4.5 basis points lower at a two-week low of 0.565%.

At the short end of the market, the two-year JGB yield edged down 0.5 basis point to minus 0.140%, while the five-year yield fell 1 basis point to minus 0.105%.

The Bank of Japan conducted its regular bond buying operations, keeping the size of one- to three-year maturities it purchased at around 420 billion yen ($3.91 billion) and the size of three- to five-year maturities bought at around 350 billion yen, as expected by market participants.

Concerns that a resurgence in coronavirus cases could derail a nascent global economic recovery pushed stocks lower, with the benchmark Nikkei share average falling 0.78%. ($1 = 107.4700 yen) (Reporting by Tokyo Markets Team; Editing by Ana Nicolaci da Costa)

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