Most JGBs gain as dismal U.S. data stokes fear of deep economic downturn

April 16 (Reuters) – Japanese government bond (JGB) prices mostly edged higher on Thursday, tracking overnight moves in U.S. Treasuries, as dismal economic data from the United States stoked fears of a deep economic downturn.

Benchmark 10-year JGB futures rose 0.22 points to 152.35, with a trading volume of 10,262 lots.

The key 10-year cash JGB yield fell 1.5 basis points to zero percent.

At the shorter end of the market, the five-year debt yield dropped 1.5 basis points to minus 0.115%, while the two-year yield stood flat at minus 0.160%.

In the super-long zone, the 20-year and the 40-year yields lost half a basis point each to 0.340% and 0.475%, respectively, while the 30-year debt yield added half a basis point to 0.465%.

U.S. Treasury yields fell across the board on Wednesday as risk aversion flared up after fresh economic data showed the coronavirus outbreak decimating U.S. consumer demand and manufacturing activity.

In further evidence of economic damage from the pandemic, U.S. retail sales fell the most on record last month, while manufacturing output fell by the most in 74 years, raising fears of a deep recession. (Reporting by Tokyo Markets Team; Editing by Ramakrishnan M.)

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