JGB yields fall to multi-week lows on renewed tariff fears
By Junko Fujita
TOKYO, Feb 24 (Reuters) - Japanese government bond (JGB) yields fell to multi-week lows on Tuesday, tracking declines in their U.S. peers overnight, as investors bought safe-haven debt amid uncertainties over U.S. President Donald Trump's tariff policy.
The 10-year JGB yield JP10YTN=JBTC fell to as low as 2.65% to touch its lowest level since December 30, and was last down one basis point (bp) to 2.095%.
The 20-year JGB yield JP20YTN=JBTC fell 4 bps to 2.870%, its lowest since December 1.
"There is a tailwind in Japan's bond market from last week but today investors bought JGBs on Trump's losing sight of the tariff policy," said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management.
"Uncertainties over the U.S. tariffs prompted investors to buy JGBs," he said.
U.S. Treasuries recovered on Monday after a selloff in the previous session, as investors pondered the implications of the Supreme Court's Friday decision to strike down Trump's sweeping use of emergency powers to impose tariffs. US/
Yields on Japan's super-long-dated bonds have been falling after Prime Minister Sanae Takaichi's landslide election earlier this month, which gave investors confidence that her government will not adopt an overly loose fiscal policy, as some opposition parties had proposed.
Strong demand from foreign investors for JGBs has also become a support for bond prices. Foreigners were dominant buyers of JGBs across the curve in January, according to data from the Japan Securities Dealers Association.
They purchased 2.2 trillion yen ($14.19 billion) of super-long dated bonds, nearing a record set in April, in the month where yields on those bonds hit a record high on concerns about worsening fiscal health.
Yields move inversely to bond prices.
The 30-year yield JP30YTN=JBTC fell 1.5 bps to 2.870%.
The two-year yield JP2YTN=JBTC fell 1 bp to 1.24%. The five-year yield JP5YTN=JBTC fell 1.5 bps to 1.590%.
($1 = 155.0900 yen)
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