Japanese government bond yields hit multi-month lows as tech selloff fuels safe-haven demand?
Japanese government bonds rallied as investors sought safety from the deepening global technology-stock selloff. The benchmark 10-year yield fell to a multi-month low, while shorter-maturity yields also declined sharply as risk appetite weakened.
By Anupam Nagar, ETMarkets.com |
ETMarkets.com
The benchmark 10-year JGB yield fell as much as 9 basis points to 1.795%, its lowest level since June 30.
Japanese government bonds (JGBs) rallied on Friday, pushing yields to multi-month lows as investors shifted towards traditional safe-haven assets amid a deepening global technology stock selloff, Reuters reported.
The benchmark 10-year JGB yield fell as much as 9 basis points to 1.795%, its lowest level since June 30, reflecting increased demand for government debt as risk appetite weakened across financial markets.
Other key maturities also recorded sharp declines. The two-year JGB yield dropped 6 basis points to 1.795%, its lowest since September 1, while the five-year yield declined 8 basis points to 2.11%, marking its weakest level since August 20.
Read more: Why did US stocks crash? Trump blames Democrats as AI regulation fears rattle markets
Other cash bond maturities had yet to trade as of 0033 GMT, according to Reuters.
The rally in Japanese government bonds came as equities across the region came under heavy selling pressure, with concerns over the sustainability of the artificial intelligence-driven technology boom weighing on investor sentiment.
Japan's benchmark Nikkei share average slumped 5.5% on Friday, Reuters reported. Technology heavyweights Advantest and SoftBank Group each tumbled around 12%, highlighting the scale of the selloff in the sector.
Read more: Japan's Nikkei slumps more than 5% as market rout deepens on AI worries
The simultaneous decline in equities and government bond yields underscored a broader shift towards defensive investments, as investors sought shelter from heightened volatility and growing uncertainty surrounding technology stocks.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
The benchmark 10-year JGB yield fell as much as 9 basis points to 1.795%, its lowest level since June 30, reflecting increased demand for government debt as risk appetite weakened across financial markets.
Other key maturities also recorded sharp declines. The two-year JGB yield dropped 6 basis points to 1.795%, its lowest since September 1, while the five-year yield declined 8 basis points to 2.11%, marking its weakest level since August 20.
Read more: Why did US stocks crash? Trump blames Democrats as AI regulation fears rattle markets
Other cash bond maturities had yet to trade as of 0033 GMT, according to Reuters.
The rally in Japanese government bonds came as equities across the region came under heavy selling pressure, with concerns over the sustainability of the artificial intelligence-driven technology boom weighing on investor sentiment.
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Japan's benchmark Nikkei share average slumped 5.5% on Friday, Reuters reported. Technology heavyweights Advantest and SoftBank Group each tumbled around 12%, highlighting the scale of the selloff in the sector.
Read more: Japan's Nikkei slumps more than 5% as market rout deepens on AI worries
The simultaneous decline in equities and government bond yields underscored a broader shift towards defensive investments, as investors sought shelter from heightened volatility and growing uncertainty surrounding technology stocks.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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