TOKYO: Japanese government bonds mostly edged higher in a subdued session on Tuesday as investors looked ahead to a sale of 30-year JGBs later this week.
Earlier in the session, Japan's Ministry of Finance offered 400 billion yen ($3.69 billion) of 10-year inflation-linked JGBs in a quarterly sale of the notes.
The lowest accepted price was 104.90, compared to market expectations of 104.50 to 104.80. The bid-to-cover ratio, a gauge of demand, rose to 2.84 from the previous sale's 2.47. As inflation-linked JGBs are relatively illiquid, the market impact of the sale was muted.
A Bank of Japan survey released in the previous session showed that Japanese households' sentiment worsened in the three months to March, and their expectations of inflation fell to levels before the central bank deployed its massive asset-buying programme three years ago.
"Global financial markets remain unstable as investors are becoming increasingly risk averse due to uncertainty over the outlook of emerging and resource-exporting economies," BOJ Governor Haruhiko Kuroda said in a speech at an annual meeting of trust banks on Monday, adding that the bank would take additional easing steps if needed to achieve its inflation target.
In the superlong zone, the 30-year JGB yield was flat at 0.400 percent, after earlier falling as low as 0.390 percent.
The finance ministry is scheduled to offer 800 billion yen of 30-year JGBs in an auction on Thursday.
The yield on the benchmark 10-year JGB fell half a basis point to minus 0.095 percent, after earlier dropping to minus 0.085 percent.
Ten-year JGB futures prices ended up 0.08 point at 151.75. after trading in a relatively narrow 151.61-151.81 range.
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