JGBs trade slightly higher as shrinking economy escalates recession risks
TOKYO, Feb 17 (Reuters) – Japanese government bond (JGB) prices edged up on Monday after data showed the economy contracted much more than expected in the fourth quarter, stoking fears it may slip into a recession.
The benchmark 10-year JGB futures gained 0.09 point to 152.58, while the 10-year cash JGB yield dropped half-a-basis point to minus 0.040%.
At the shorter end of the market, the five-year yield lost half-a-basis point to minus 0.135%, while the two-year yield stood flat at minus 0.145%.
The 20-year and the 30-year yields fell 1.5 basis points each to 0.240% and 0.370%, respectively.
Japan’s economy contracted at an annualised pace of 6.3% in October-December period, data showed on Monday, shrinking at the fastest pace in almost six years and raising the risk it could again slide into recession. Economists’ median estimate was for a 3.7% contraction. (Reporting by Tokyo Markets Team; Editing by Aditya Soni)
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