Japan's long-dated bond yields track U.S. lower

BY Reuters | TREASURY | 10/13/21 03:34 AM EDT

TOKYO, Oct 13 (Reuters) - Yields on long-dated Japanese government bonds fell on Wednesday, tracking U.S. Treasury yields lower, but declines were capped in the absence of market-moving cues.

The 10-year JGB yield fell 0.5 basis points to 0.085%, while the 20-year JGB yield fell 0.5 basis points to 0.465%.

The yield on 10-year U.S. Treasury notes fell 2.1 basis points to 1.584% on Tuesday ahead of a key report on consumer prices to be released on Wednesday.

The 30-year JGB yield fell 0.5 basis points to 0.690% and the 40-year JGB yield fell one basis point to 0.760%.

Yields on shorter bonds were unchanged with the five-year bonds untraded and its yield remained at minus 0.080%. The two-year JGB yield was unchanged at minus 0.120%.

Benchmark 10-year JGB futures barely moved at 151.25, with a trading volume of 18,559 lots. (Reporting by Tokyo markets team; Editing by Ramakrishnan M.)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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