Benchmark 10Y JGB yield hits a new low of minus 0.162 pct, 15Y yield dips below zero

The Japanese 10-year government bonds hit a fresh all-time low of minus 0.162 percent on Tuesday, following global debt prices as investors remain uncertain about the global economic outlook and the near-term path of BoJ and US interest rates. Also, investors shifted to safe-haven instruments after recent four polls suggested Britain is on course to leave the European Union.

The yield on the benchmark 10-year bonds, which moves inversely to its price fell to all-time low of -0.162 percent, yield on super-long 40-year bonds nearly dipped 1 basis point to 0.240 percent, yield on 15-year bonds more than 1/2 basis point to -0.003 percent (dip below zero for the first time) and the yield on short-term 2-year bonds fell ½ basis points to -0.274 percent by 05:45 GMT.

Following the global debt market, the benchmark 10-year US Treasury note yield seen marching lower towards 1.60 percent mark. German 10-year bund yields continue to hover at record low on Monday, after testing its 2015 low of 0.05 percent last week, are likely to test zero soon as investors remained cautious ahead of the Federal Reserve meeting and Britain’s referendum.

Moreover, the JGBs have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Bank of Japan's target. Today, crude oil prices fell as investors stay risk-averse ahead of a referendum that could end Britain's membership in the European Union. Apart from this, prices were also weighed by the prospect of bigger crude stocks in the U.S. The International benchmark Brent futures fell 0.79 percent to $49.95 and West Texas Intermediate (WTI) dipped 0.96 percent to $48.41 by 05:45 GMT.

In addition, the Bank of Japan is expected to remain on hold at its monetary policy meeting scheduled on June 16. This is despite the need for further policy easing, as suggested by recently released economic data. Please see for more details – http://www.econotimes.com/BoJ-likely-to-stay-pat-on-rising-global-uncertainties-220757

Meanwhile, the benchmark Nikkei 225 index was trading down -1.10 percent at 15,842.30, and the broader Topix index trading lower -1.03 percent to 1,271.25 points by 05:45 GMT.