10-year JGB yields edge lower after strong auction

TOKYO: Yields on 10-year Japanese government bonds edged higher on Tuesday after a strong auction for the benchmark tenor eased concerns about investors' demand for new debt.

However, the rest of the yield curve was little changed as dealers mulled the Bank of Japan's (BOJ) next moves before its policy meeting in March.

The BOJ has already indicated it will trim the purchase of short-term and medium-term bonds in its operations this month. In addition, there is growing speculation the BOJ will allow long-term bond yields to trade in a wider range.

Benchmark 10-year JGB futures rose 0.04 point to 151.8, with a trading volume of 24,259 lots.

The 10-year JGB yield fell 0.5 basis point to 0.050%.

The 20-year JGB yield was flat at 0.465%, while the 30-year JGB yield was unchanged at 0.665%.

At the long end of the yield curve, the 40-year JGB yield held steady at 0.710%.

At the middle of the curve, the five-year yield was flat at minus 0.110%.

At the short end, the two-year JGB yield stood at minus 0.125%.