TOKYO: Japanese government bond prices ticked up on Tuesday as sinking oil prices raised concerns over the global economic outlook, with the five-year yield falling to a record low following a strong auction result.
The 2.7 trillion yen ($23 billion) of five-year JGBs were sold at a higher price than market players had expected, triggering short-covering by traders.
The new bonds, the 121st five-year bond issue, were sold at an yield of 0.083 percent, the lowest yield ever for a five-year bond auction.
The 120th, the current benchmark, paper saw its yield falling to 0.050 percent, a record low. The market, supported by the Bank of Japan's massive bond buying since 2013, also drew strength from a fall in the price of shares and other risk assets.
The 10-year JGB yield fell 1.0 basis point to 0.365 percent , its lowest level since April 2013. The 20-year yield dipped 0.5 basis point to 1.125 percent.
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