TOKYO: Japanese government bond prices turned higher on Tuesday as the market took heart from firm investor demand at a 10-year debt auction.
The 10-year JGB yield was down a basis point at minus 0.065 percent after edging up to minus 0.050 percent earlier in response to an overnight fall in the price of U.S. Treasuries.
December 10-year JGB futures edged up 0.02 point to 151.80.
The bid-to-cover ratio, a gauge of demand, at Tuesday's 2.4 trillion yen ($22.98 billion) 10-year sale rose to 4.35 from 3.82 at the previous auction last month.
Long-term JGBs have attracted steady demand from bond investors after the Bank of Japan launched a yield curve control scheme in September. The central bank aims to keep the 10-year yield around zero percent, lessening the risk of a sudden surge in yields.
Treasuries fell on Monday as risk appetite improved after the FBI cleared Democratic presidential candidate Hillary Clinton of any wrongdoing in the use of a private email server.
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