10-year JGB yields at highest in near 1 year after soft auction

TOKYO: Yields on benchmark 10-year Japanese government bonds rose on Tuesday to their highest in almost a year after tepid demand at an auction of five-year notes raised concerns about waning appetite for fixed income.

Investors submitted bids worth 3.49 times the amount of five-year bonds sold, down from a bid-cover ratio of 3.83 at the previous auction.

Bond prices have been falling globally as investors shift money into equities and other risky assets, which is placing upward pressure on yields.

Benchmark 10-year JGB futures fell 0.06 point to 151.45, with a trading volume of 20,965 lots.

The 10-year JGB yield rose 0.5 basis point to 0.080%, which is the higest since last March.

The 20-year JGB yield was flat at 0.475%, and the 30-year JGB yield was unchanged at 0.675%.

At the long end of the yield curve, the 40-year JGB yield held steady at 0.715%.

The five-year yield rose 1 basis point to minus 0.095%.

The two-year JGB yield was flat at minus 0.130%.