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JGBs slip after Fed officials temper rate-cut expectations

Fri, 23rd Aug 2019 05:50

TOKYO, Aug 23 (Reuters) - Japanese government bond pricesslipped on Friday after comments from Federal Reserve officialstempered expectations for further U.S. interest rate cuts andreinforced market view that there is no pre-set path for morecuts.

Philadelphia Fed President Patrick Harker and Kansas CityFed President Esther George said on Thursday that they saw noreason to cut interest rates without new economic deterioration.

A bounce by Japanese shares also nudged JGB prices lower bycurbing investor demand for safe-haven bonds.

The five-year JGB yield rose half a basispoint to minus 0.335%. The 10-year yield was flatat minus 0.245% and the 30-year yield climbedhalf a basis point to 0.195%.

JGB market movements were limited, with investors lookingfor further clues on monetary policy direction from U.S. FederalReserve Chairman Jerome Powell's speech at a gathering ofcentral bankers later in the day.

(Reporting by the Tokyo markets team, Editing by SherryJacob-Phillips)

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