JGB yields track fall in U.S. Treasuries

TOKYO, May 13 (Reuters) – Japanese government bond (JGB) yields on Friday tracked overnight declines in U.S. Treasury yields as the bond market weighed the odds of the Fed keeping the economy from lurching into recession while looking to tame rising inflation. US/

The 10-year JGB yield JP10YTN=JBTC fell 0.5 basis point to 0.240% and the 20-year JGB yield JP20YTN=JBTC fell 2 basis points to 0.740%.

“Even as inflation remains high, expectations that yields on U.S. and German bonds might have peaked their highs could prompt investors to buy Japanese bonds at their dent,” said Katsutoshi Inadome, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities.

The 30-year JGB yield JP30YTN=JBTC fell 1 basis point to 0.995%.

The 40-year JGB yield JP40YTN=JBTC fell 1.5 basis point to 1.110%.

The two-year JGBs were not traded and the yield JP2YTN=JBTC was flat at -0.055%.

The five-year yield JP5YTN=JBTC fell 0.5 basis point to 0.005%.

Benchmark 10-year JGB futures 2JGBv1 rose 0.07 point to 149.54, with a trading volume of 16,283 lots.

(Reporting by Tokyo markets team;
Editing by Vinay Dwivedi)

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