Benchmark JGB yields hit 2-week low as oil rout boosts safe havens

TOKYO, April 22 (Reuters) – Yields on benchmark 10-year Japanese government bonds fell to a two-week low on Wednesday, as a historic crash in oil futures ignited an exodus of investors from riskier assets into the safety of holding government debt.

U.S. crude futures have managed to trade in the positive territory after turning negative for the first time in history on Monday, leaving many investors stunned.

Oil supplies are so excessive that countries are running out of room to store barrels of crude, and energy demand is expected to remain low due to the coronavirus pandemic.

Worries that price disruptions will spread from the oil market is pushing money into safe havens like government debt.

The 10-year JGB yield fell 2.5 basis points to minus 0.010%, the lowest since April 6.

Futures contracts for 10-year JGBs rose 0.3 point to 152.4, with a trading volume of 6,394 lots.

The 20-year JGB yield fell 2.5 basis points to 0.315%.

The 30-year JGB yield fell 3.5 basis points to 0.435%.

In the middle of the yield curve, the five-year yield fell 2.5 basis points to minus 0.125%.

At the short end, the two-year JGB yield fell 1 basis point to minus 0.145%. (Reporting by the Tokyo markets team; Editing by Rashmi Aich)

Source: Read Full Article