REFILE-JGBs steady to firmer as U.S. bonds rebound after data, Biden plan | Reuters

Japanese government bonds were steady to slightly firmer on Friday after U.S. bond prices bounced back overnight, as higher-than-expected weekly jobless data dented optimism on the U.S. economic recovery.

Investors were also relieved after U.S. President Joe Biden’s spending plan showed that his $2 trillion initiative will be spent over eight years, easing worries about an immediate increase in debt issues.

All the attention is now on the upcoming U.S. jobs data due at 1230 GMT, which is expected to show non-farm payroll increase of 647,000.

The 10-year JGB yield was flat at 0.120%, though it was up 4 basis points on the week after the BOJ surprised the market by announcing larger-than-expected cuts in its bond purchase this month.

The 20-year JGB yield fell 0.5 basis point to 0.490% while the 30-year yield was flat at 0.695%.

At the shorter end, the two-year and five-year yield were flat at minus 0.125% and minus 0.085% respectively.

The benchmark JGB futures rose 0.07 point in price to 151.01 . (Reporting by Tokyo Markets Team, Editing by William Maclean)

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