Wires

JGBs bounce back on trade war fears, but momentum weak

TOKYO, Dec 4 (Reuters) - Japanese government bonds bounced back from 7-1/2-month lows on Wednesday as the spectre of re-escalation in the U.S.-China trade war helped reverse a five-day losing streak.

However, sentiment remained fragile, with the market giving back a big part of the earlier gains.

The benchmark 10-year JGB futures rose as high as 0.52 point in early trade after U.S. President Donald Trump warned a trade deal with China might not come until after the 2020 U.S. presidential election.

His comments raised worries that the United States could go ahead with tariffs on Chinese imports on Dec. 15.

The JGB futures later pared more than half of the gains to 152.74, not far from Tuesday's 7 1/2-month low of 152.39.

In the cash bond market, the 10-year JGB yield fell 1.5 basis points to minus 0.040%, off the 7 1/2-month high of minus 0.020%, while the 20-year JGB yield fell 1.5 basis points to 0.275%.

The 30-year JGB yield fell 1.5 basis points to 0.425%, ahead of the 700 billion yen 30-year bond auction on Thursday.

The five-year yield, which also hit a 7 1/2-month high of minus 0.135% on Tuesday, fell 1.5 basis points to minus 0.150%. (Reporting by Tokyo markets team; Editing by Sriraj Kalluvila)