JGBs trade in a tight range as reports on bond buyback, stimulus measures weigh
TOKYO: Japanese government bonds moved in a narrow range on Tuesday as traders weighed reports about lawmakers considering a possible buyback of longer-dated debt and fresh stimulus measures.
The 30-year JGB yield fell to as low as 2.86% earlier in the session.
It was last trading at 2.92%, up 1 basis point (bp) from the previous session. Yields move inversely to prices.
Reuters reported that Japan is considering buying back some super-long government bonds issued in the past at low interest rates.
The move shows the finance ministry's willingness to improve demand for bonds with super-long maturities, whose yields touched record highs last month, said Naoya Hasegawa, chief bond strategist at Okasan Securities.
The latest report comes as the market awaits details of the ministry's bond sale plans. Reuters reported last month that it was considering a cut in the sale of super-long bonds.
The Ministry of Finance, which oversees the government's debt issuance, will reach a final decision on the buybacks after holding meetings with bond market participants on June 20 and June 23, the sources told Reuters.
Meanwhile, local media reported on Tuesday that Japan's ruling coalition agreed to include a plan to distribute cash handouts in their election campaign pledges.
The move, which adds to concerns over the government's already tattered finances, prompted investors to sell shorter-dated bonds, said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management.
JGB yields track US peers higher after resilient labour data
The 10-year JGB yield rose to as high as 1.48%, before easing to 1.475%, up 0.5 bp from the previous session.
The five-year yield was flat at 1.03%, after rising to 1.04% earlier in the session.
'Without the report on bond buybacks, the JGBs could have seen a sell-off across the curve,' Inadome added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Oil up on hopes of positive US-China trade talks
NEW YORK: Oil prices edged up 1% to a seven-week high on Tuesday on hopes trade talks between the US and China - the world's two biggest economies - will result in a deal that could support global economic growth and boost oil demand. Brent crude futures rose 81 cents, or 1.2%, to $67.85 a barrel by 11:22 a.m. EDT (1522 GMT), while US West Texas Intermediate crude rose 83 cents, or 1.3%, to $66.12. Those gains pushed both crude benchmarks into technically overbought territory for the first time since early April and put Brent on track for its highest close since April 17 and WTI on track for its highest close since April 3. US Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. 'There's a sense of optimism around these trade talks; the market is waiting to see what this will produce, and that is supporting prices,' said Harry Tchilinguirian, group head of research at Onyx Capital. On the supply side, allocations to Chinese refiners showed that Saudi Arabia's state oil company Saudi Aramco will ship about 47 million barrels of oil to China in July, 1 million barrels less than June's allotted volume, Reuters reported. The Saudi allocations could be an early sign that the unwinding of OPEC+ production cuts might not result in much additional supply, Tchilinguirian said. OPEC+, which pumps about half of the world's oil and includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, put forward plans for an output increase of 411,000 barrels per day (bpd) for July as it looks to unwind production cuts for a fourth straight month. A Reuters survey found that OPEC's May increase to oil output was limited, with Iraq, the second biggest OPEC producer behind Saudi Arabia, pumping below target to compensate for earlier overproduction, and Saudi Arabia and the United Arab Emirates making smaller increases than agreed. Elsewhere, Iran said it would soon make a counter-proposal for a nuclear deal in response to a US offer that Tehran deems 'unacceptable', while US President Donald Trump made clear that the two sides remained at odds over whether Tehran would be allowed to continue enriching uranium on Iranian soil. Iran is the third-largest OPEC producer and any easing of US sanctions on Tehran should allow Iran to export more oil, which should reduce crude prices.
Business Recorder
9 hours ago
- Business Recorder
Oil up 1% at 7-week high on hopes of positive US-China trade talks
NEW YORK: Oil prices edged up 1% to a seven-week high on Tuesday on hopes trade talks between the U.S. and China - the world's two biggest economies - will result in a deal that could support global economic growth and boost oil demand. Brent crude futures rose 81 cents, or 1.2%, to $67.85 a barrel by 11:22 a.m. EDT (1522 GMT), while U.S. West Texas Intermediate crude rose 83 cents, or 1.3%, to $66.12. Those gains pushed both crude benchmarks into technically overbought territory for the first time since early April and put Brent on track for its highest close since April 17 and WTI on track for its highest close since April 3. U.S. Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. 'There's a sense of optimism around these trade talks; the market is waiting to see what this will produce, and that is supporting prices,' said Harry Tchilinguirian, group head of research at Onyx Capital. On the supply side, allocations to Chinese refiners showed that Saudi Arabia's state oil company Saudi Aramco will ship about 47 million barrels of oil to China in July, 1 million barrels less than June's allotted volume, Reuters reported. The Saudi allocations could be an early sign that the unwinding of OPEC+ production cuts might not result in much additional supply, Tchilinguirian said. Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost OPEC+, which pumps about half of the world's oil and includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, put forward plans for an output increase of 411,000 barrels per day (bpd) for July as it looks to unwind production cuts for a fourth straight month. A Reuters survey found that OPEC's May increase to oil output was limited, with Iraq, the second biggest OPEC producer behind Saudi Arabia, pumping below target to compensate for earlier overproduction, and Saudi Arabia and the United Arab Emirates making smaller increases than agreed. Elsewhere, Iran said it would soon make a counter-proposal for a nuclear deal in response to a U.S. offer that Tehran deems 'unacceptable', while U.S. President Donald Trump made clear that the two sides remained at odds over whether Tehran would be allowed to continue enriching uranium on Iranian soil. Iran is the third-largest OPEC producer and any easing of U.S. sanctions on Tehran should allow Iran to export more oil, which should reduce crude prices. In Europe, meanwhile, the European Commission proposed an 18th package of sanctions against Russia for its invasion of Ukraine, aimed at Moscow's energy revenues, banks and military industry. Russia was the world's second biggest crude producer in 2024 behind the U.S., and any increase in sanctions will likely keep more of that oil out of global markets, which could support oil prices. US oil inventories and exports The American Petroleum Institute (API) trade group and the U.S. Energy Information Administration (EIA) are due to release U.S. oil inventory data on Tuesday and Wednesday, respectively. Analysts forecast energy firms added about 0.1 million barrels of oil to U.S. stockpiles during the week ended June 6. If correct that would be the first storage increase in three weeks and compares with an increase of 3.7 million barrels during the same week last year and an average increase of 2.8 million barrels over the past five years (2020-2024).
Business Recorder
14 hours ago
- Business Recorder
Paramount to lay off 3.5% of US staff in latest job cut, memo shows
Paramount Global is laying off 3.5% of its U.S. staff in the latest round of job cuts as the company grapples with a decline in cable TV subscribers, according to an internal memo seen by Reuters. The layoff was communicated to its staff on Tuesday morning and it could affect some non-U.S. workforce over time, the memo from the office of the company's three co-CEOs showed. This is in addition to the 15% cuts Paramount had announced last August and comes as the media industry navigates a 'generational disruption' as millions of cable users cut the cord and opt for streaming services such as Netflix. 'We are taking the hard, but necessary steps to further streamline our organization starting this week,'? Paramount Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins wrote in the memo. Paramount had 18,600 employees as of Dec. 31, 2024. CNBC first reported the development on Tuesday. Paramount channels, including CBS and Nickelodeon, to go dark on YouTube TV The company has pitched its $8.4 billion merger with billionaire scion David Ellison's Skydance Media. But the deal is yet to secure regulatory approval, pending a $10 billion lawsuit U.S. President Donald Trump filed against CBS News in October over an interview with then-vice president Kamala Harris that he alleged was deceptively edited to favor Harris.
