TOKYO: Japanese government bond prices dipped on Monday as a rise in Tokyo stocks dampened investor demand for safe-haven debt, although gains by US Treasuries limited the losses.
The benchmark 10-year JGB yield rose half a basis point to 0.330 percent. The 20-year yield also climbed half a basis point, to 1.070 percent.
Expectations that Tuesday's 800 billion yen ($6.5 billion) 30-year auction would attract decent bids also kept JGB losses light. A large amount of government debt matures this month and dealers see the new 30-years attracting demand from investors looking to put funds back into JGBs.
Treasury yields initially rose Friday on an upbeat non-farm jobs report that bolstered the case for a rate increase by the Federal Reserve later this month, but they reversed course and ended the day lower as weaker oil prices fed concerns of weakening inflation.
The Nikkei gained 1.3 percent on Monday after US jobs data suggested that the economy was strong enough to sustain a rate hike.
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