Markets

JGBs track decline in US yields; 5-year sale sees strong demand

  • The five-year JGB yield fell 0.5 basis point to minus 0.105% as of 0517 GMT. The finance ministry sold about 2.5 trillion yen ($22.7 billion) of the securities at a highest yield of minus 0.101%
Published September 9, 2021

TOKYO: Japanese government bond yields slipped on Thursday as US Treasury yields pulled back, while a domestic five-year note auction also brought in strong demand.

The five-year JGB yield fell 0.5 basis point to minus 0.105% as of 0517 GMT. The finance ministry sold about 2.5 trillion yen ($22.7 billion) of the securities at a highest yield of minus 0.101%, with the bid-to-cover ratio improving to 4.42 from 3.76 at the previous sale.

"However you look at it, this was a good auction result," said a market participant at a domestic securities firm.

Twenty- and thirty-year JGB yields each ticked 0.5 basis point lower, to 0.425% and 0.660%, respectively.

The 10-year yield was flat at 0.040%, while benchmark 10-year JGB futures rose 0.03 point to 151.88, with a trading volume of 32,249 lots.

Similar-dated Treasury yields fell 0.5 basis point to 1.3292% in Tokyo trading, extending Wednesday's 5 basis point slide.

The two-year JGB was untraded, and last yielded minus 0.125%.

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