Benchmark JGB yield rises to 3-week high as risk aversion eases

TOKYO: The benchmark 10-year Japanese government bond yield rose to a three-week high on Tuesday as risk aversion that had gripped the broader markets eased, curtailing demand for safe-haven debt.

The 10-year JGB yield was up 3 basis points at 0.025 percent, its highest since Aug. 24.

The 10-year yield had dropped to a 10-month low of minus 0.015 percent on Friday, when tensions in the Korean Peninsula and concerns over Hurricane Irma took a toll on risk assets.

Demand at Tuesday's 2.2 trillion yen ($20.12 billion) five-year JGB auction dropped off slightly as investor bids for safe-haven government bonds ebbed.

The bid-to-cover ratio, a gauge of demand, at the auction slipped to 4.07 from 4.46 at the previous sale last month. But it was still higher than 3.97, the average from the last 10 auctions.

The five-year JGB yield was 2.5 basis points higher at minus 0.120 percent. December 10-year JGB futures slipped 0.28 point to 150.92.