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JGBs gain as Moderna CEO's Omicron warning lifts safe-haven assets

Kitco News

TOKYO, Nov 30 (Reuters) - Japanese government bonds (JGBs) gained on Tuesday, in line with U.S. Treasuries, after the chief of U.S. drugmaker Moderna said COVID-19 vaccines are unlikely to be as effective against the Omicron variant as it has been with other types.

Benchmark 10-year JGB futures gained 0.20 point to 151.94, with a trading volume of 29,266 lots.

The yield on the benchmark 10-year cash JGBs fell 1.5 basis point to a three-week low of 0.055% .

The 20-year yield fell 2.0 basis points to 0.450% while the 30-year bond yield also shed 2.0 basis points to 0.665% .

Moderna (MRNA.O) Chief Executive Officer Stéphane Bancel told the Financial Times that COVID-19 vaccines are unlikely to be as effective against the Omicron variant as they have been previously. read more

The news sparked a fresh wave of selling in risk assets, with Japan's Topix stock index hitting a three-month low, and buying in low-risk assets such as bonds.

Reporting by Tokyo Markets Team; Editing by Sherry Jacob-Phillips
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