TOKYO: Yields on 20-year Japanese government bonds edged higher on Monday as some investors made room ahead of a 1.2 trillion yen ($12.2 billion) auction of the same maturities the following day.
The 20-year yield added 0.5 basis point to 1.705 percent, matching a two-week high hit on Friday, while the 30-year yield was unchanged at 1.815 percent.
"The absolute level of yield is OK but not very attractive, but not very unattractive. It should be OK just slightly above 1.7 percent," said Yuya Yamashita, rates strategist at JPMorgan in Tokyo. "The relative value is supportive. There is no other relative value player in the superlong sector."
Apart from Tuesday's 20-year auction, the Ministry of Finance will sell 2.9 trillion yen of two-year bonds on Thursday.
The five-year yield was flat at 0.300 percent after earlier dipping 0.5 basis point to 0.295 percent.
The benchmark 10-year yield was not quoted, while 10-year futures were up 0.08 point at 143.79, facing resistance at their 20-day moving average of 143.84.
Bank of Japan Governor Haruhiko Kuroda said on Saturday that the bold policy actions that he has championed to spur growth in the world's third-largest economy were gaining traction.
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