JGBs rise in line with US Treasuries; 5-year auction sees fair demand
- Benchmark 10-year JGB futures rose 0.06 point to 152.12, with a trading volume of 18,670 lots, while the key 10-year cash bond yield fell one basis point to 0.005pc.
Most Japanese government bond (JGB) prices rebounded on Thursday, taking their cues from firmer US Treasuries in Asian trading and weaker global stocks amid fears of a fresh wave of coronavirus infections.
Benchmark 10-year JGB futures rose 0.06 point to 152.12, with a trading volume of 18,670 lots, while the key 10-year cash bond yield fell one basis point to 0.005pc.
The five-year cash JGB yield slipped half a basis point to minus 0.115pc after Thursday's 1.9 trillion yen ($17.8 billion) five-year debt auction attracted fair investor interest.
The auction bid-to-cover ratio, a gauge of demand, declined to 3.78 from 4.49 at the previous sale last month.
In the super-long zone, the 20-year JGB yield eased half a basis point to 0.385pc, while the 30-year and the 40-year yields gained one basis point each to 0.560pc and 0.580pc, respectively.
US Treasury yields edged down in Asian trading on Thursday, with the key 10-year note yield last trading at 0.708pc, compared to Wednesday's US close of 0.733pc.
Weaker global stocks also created a tailwind for the JGBs, with E-Mini futures for the S&P 500 shedding 0.65pc and Japan's benchmark Nikkei dipping 0.45pc, as spiking coronavirus cases in some US states and China crushed hopes of a quick economic comeback from the pandemic.
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