JGBs flat, capped by rallying equities

TOKYO: Japanese government bond prices were flat across the board on Friday, capped by an ongoing surge in the equity market.

The five-year and 30-year yields were unchanged at minus 0.100 percent and 0.810 percent, respectively, while the 10-year yield inched up 0.5 basis point to 0.055 percent.

Underlying investor demand for JGBs, however, remained steady. Friday's 300 billion yen ($2.66 billion) liquidity-enhancing JGB auction attracted ample interest as the Bank of Japan's massive debt-buying scheme was expected to support the debt market in 2018 as well.

The finance ministry regularly auctions off-the-run JGBs at these auctions that are designed to improve market liquidity.

Japan's Nikkei share average rode on an ongoing surge in global equities and probed 26-year highs on the back of robust banking and brokerage shares.