Japan's 10-year bond yields track U.S. Treasury yields lower

BY Reuters | TREASURY | 12/06/21 12:34 AM EST

TOKYO, Dec 6 (Reuters) - Japan's 10-year government bond yields fell on Monday, tracking a tumble in U.S. 10-year Treasury yields as uncertainty over the Omicron coronavirus variant dampened risk sentiment.

The 10-year JGB yield fell one basis point to 0.040%.

The benchmark U.S. 10-year Treasury yield fell to its lowest level since Sept. 23 at 1.335% on Friday, underpinned by demand for safe-haven debt, and were last at 1.38% on Monday.

With the absence of market-moving indicators on Monday, the 10-year bond yields moved along with the U.S. bonds in Asian trading, a market participant said.

The 20-year JGBs were not traded and their yield remained at 0.450%, while the 30-year JGB yield fell 0.5 basis point to 0.660%.

The 40-year JGB yield was flat at 0.705% after the bonds were not traded.

The two-year JGBs were not traded and the yield was unchanged at minus 0.120%.

The five-year yield fell 0.5 basis point to minus 0.105%.

Benchmark 10-year JGB futures rose 0.09 point to 152.2, with a trading volume of 12,475 lots. (Reporting by Tokyo markets team; Editing by Devika Syamnath)

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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