Longer-dated JGBs edge up after auction attracts ample demand

TOKYO: Longer-dated Japanese government bond prices edged up on Tuesday after a regularly held auction to enhance market liquidity attracted ample investor demand.

The 30-year JGB yield and the 40-year yield  each declined by half a basis point to 0.875 percent and 1.085 percent, respectively.

The five-year yield stood unchanged at minus 0.085 percent while the 10-year yield edged up 0.5 basis point to 0.070 percent.

JGBs of shorter maturities like the five- and 10-years continued to feel the pressure from bullish stocks, with Tokyo's Nikkei on track to mark a record 16-day winning streak.

The longer-dated JGBs fared better after a liquidity-enhancing auction held by the finance ministry, under which it sold 400 billion yen ($3.53 billion) of bonds with remaining maturities of 15.5 to 39 years, drew firm investor demand.

The bid-to-cover ratio, a gauge of demand, at the auction rose to 3.15 from the previous sale's 2.43.