1 Minute Read by Reuters Staff (Reuters) – TOKYO, July 5 (Reuters) – After solid employment growth but little wage inflation pressure in the United States last week, Japanese government bond yields fell on Monday, lowering expectations of an early unwinding of the Federal Reserve’s stimulus. The yield on the 10-year JGB declined 0.5 basis point to 0.035 percent, while the yield on the 20-year JGB fell 0.5 basis point to 0.410 percent, the lowest in more than three weeks. However, ahead of a 30-year JGB auction, the 30-year yield jumped 0.5 basis point to 0.670 percent. The yield on the 40-year JGB increased by 0.5 basis point to 0.740 percent. With a trading volume of 18,523 lots, benchmark 10-year JGB futures increased 0.20 point to 152.12. JGB prices rose as U.S. Treasuries rose after U.S. payrolls data indicated an encouraging increase, but not so robust as to stir fears of inflation and an earlier reduction of the Federal Reserve’s asset purchase program. Tokyo Markets Team contributed reporting, while Sherry Jacob-Phillips edited the piece./n
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