JGB yields rise on Sino-U.S. trade deal hopes

TOKYO, Dec 11 (Reuters) - Japanese government bond (JGB) yields rose for most tenors on Wednesday due to cautious optimism that the United States and China will find a way to break the impasse in their ongoing trade war.

U.S. tariffs on nearly $160 billion worth of Chinese consumer goods are set to kick in on Dec. 15. However, negotiators from both sides are planning for a delay of the tariffs, the Wall Street Journal reported on Tuesday.

Futures prices fell as some investors sold contracts expiring in December as they prepared to switch to the futures contract expiring in March next year.

The 10-year futures expiring in December fell 0.36 point to 152.03, while contracts expiring in March fell 0.26 point to 152.07.

The benchmark is expected to switch to the March contract as early as Thursday.

At the very long end of the yield curve, bond prices rose in a sign of healthy investor demand to lock in returns over longer durations.

The 10-year JGB yield rose 2 basis points to minus 0.005%.

The 20-year JGB yield rose 0.5 basis point to 0.285%, while the 30-year JGB yield was flat at 0.420%.

At the super-long end of the yield curve, the 40-year JGB yield fell 0.5 basis point to 0.435%.

The five-year yield rose 2 basis points to minus 0.090%.

At the short end of the curve, the two-year JGB yield rose 1.5 basis points to minus 0.105%. (Reporting by the Tokyo markets team; editing by Uttaresh.V)