TOKYO: Japanese government bond prices edged down on Thursday, pressured by an overnight drop in US Treasuries but underpinned by a decent outcome at a 10-year auction.
The Ministry of Finance conducted its monthly auction of 10-year JGBs, offering 2.4 trillion yen ($19.76 billion), reopening the current issue with a coupon of 0.4 percent.
The lowest accepted price at the auction was 100.76 to yield 0.320 percent, in line with market expectations.
The bid-to-cover ratio, a measure of demand, was 2.80 times, down from the last sale's 3.03 times, but the tail between the average and accepted lowest prices narrowed slightly to 0.02 from 0.03 at last month's sale.
The yield on the 10-year cash bond was up half a basis point at 0.315 percent, but down from a session high of 0.325 percent.
In the superlong zone, the yield on 20-year JGBs was flat at 1.080 percent, while the 30-year JGB yield rose half a basis point to 1.365 percent.
The 10-year JGB futures price ended flat on the day at 148.42, above a low of 148.33 touched in the morning session.
US Treasury yields rose on Wednesday, with two-year yields soaring to a four and a half year high, after Federal Reserve Chair Janet Yellen said the US economy was "performing well" and could justify an interest rate hike in December.
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