JGB yields track U.S. Treasuries lower amid slowdown jitters

BY Reuters | ECONOMIC | 07/01/22 01:44 AM EDT

TOKYO, July 1 (Reuters) - Japanese government bond yields fell on Friday, tracking U.S. Treasury peers, which declined on concerns the Federal Reserve would dampen growth more than needed to curb soaring inflation.

The 10-year JGB yield fell 0.5 basis point to 0.220% and the 20-year JGB yield dropped 1.5 basis points to 0.875%.

The 30-year JGB yield slipped 0.5 basis point to 1.235%.

In a sign of a slowing U.S. economy, consumer spending rose a less-than-expected 0.2% last month, the Commerce Department said. It also lowered data for April to show outlays increased 0.6% instead of 0.9% as previously reported.

Losses in Japanese equities also boosted demand for safe-haven debt. Japan's benchmark Nikkei fell below the psychological level of 26,000 mark for the first time in almost two weeks.

The two-year JGB yield fell 0.5 basis point to -0.070% and the five-year yield lost 1 basis point to 0.010%.

The 40-year JGB yield was flat at 1.335%.

Benchmark 10-year JGB futures rose 0.32 point to 148.93, with a trading volume of 13,122 lots. (Reporting by Tokyo markets team; Editing by Sherry Jacob-Phillips)

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.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.