TOKYO: Japanese government bond yields fell on Wednesday, supported by strong outcome of an auction in the previous session and demand for futures, whose trade had turned thin towards the end of the fiscal year.
The 40-year JGB yield fell 8.5 basis points (bps) to 1.415%, its lowest level since March 14.
Auction for the notes in the previous session saw a bigger demand than the one before that, sending the yields lower.
The 20-year JGB yield fell 2.5 bps to 0.995%, while the 30-year JGB yield fell 3 bps to 1.220%.
“Investors welcomed the better-than-expected auction outcome in the previous session, which underpinned demand for mid-to-long term debt today,” said Keisuke Tsuruta, fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.
The 10-year JGB yield fell 1 basis point to 0.295%, after rising to 0.315%, its highest since March 22. “The 10-year bonds were sold in earlier in the session, following overnight higher on US Treasury yields.
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But investors bought back the bonds as futures rose.“ Benchmark 10-year JGB futures rose to as high as 148.81. It last traded up 15 yen at 148.66.
The two-year JGB yield was unchanged at -0.065% and the five-year yield fell 0.5 basis point to 0.070%.
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