JGBs gain as Donald Trump wins 2016 presidential election

The Japanese government bonds gained Wednesday as investors poured into safe-haven assets after the United States Republican candidate Donald Trump conquered victory in the 2016 presidential election against Democrat opponent Hillary Clinton. Also, Republicans retained control of the Senate and the House of Representatives.

The benchmark 10-year bond yield, which moves inversely to its price, fell 2 basis points to -0.08 percent, the yield on long-term 30-year Treasury dipped 2-1/2 basis points to 0.47 percent and the yield on short-term 2-year slid 1-1/2 basis points to -0.27 percent by 06:00 GMT.

Moreover, global government bond yields tumbled as the United States Republican candidate Donald Trump win the 2016 presidential election against Democrat opponent Hillary Clinton.

Following this news, the global bonds prices surged as investors sought safe-haven assets. The U.S 10-year bond yield fell 6 basis points to 1.80 percent, the Australian 10-year Treasury note yield dipped 10-1/2 basis points to 2.256 percent, the German 10-year yield slid 9 basis points to 0.097 percent and the Japanese 10-year note yield inched 2 basis points lower to -0.08 percent.

The market is in panic as Trump's anti-trade stance would jeopardise trade with China and other emerging market countries. His anti-immigration policies could also create labour shortages in the U.S. economy. Business confidence would take a tumble, and new downside risks to the economy would reduce the probability of a December rate hike by the Federal Reserve.

Meanwhile, the benchmark Nikkei 225 closed down 5.36 percent at 16,251.54 and the broader Topix index closed 4.57 percent lower to 1,301.16 points.