TOKYO: Yields on Japanese government bonds strengthened on Thursday after a weak demand for an auction prompted investors to sell debt, pushing benchmark 10-year yields to a new high.
The 10-year JGB yield rose 1.5 basis points to 0.220%, its highest since January 2016.
The two-year JGB yield rose 0.5 basis point to minus 0.040%, also the highest in six years, while the 30-year JGB yield jumped four basis points to 0.870%, its highest since November 2018.
The liquidity auction earlier in the day received bids worth 2.01 times the amount available, lower than a bid-cover ratio of 2.07 times at the previous auction.
Japan’s 5-year bond yield scales zero
"The result has triggered a sell-off of futures," said a market participant.
Benchmark 10-year JGB futures fell 0.12 point to 150.08, with a trading volume of 17,899 lots.
The 20-year JGB yield rose 2.5 basis points to 0.650%.
The 40-year JGB yield climbed 3 basis points to 0.905%.
The five-year yield edged up 1 basis point to 0.025%.
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