JGBs steady to slightly softer, capped by rallying equities

TOKYO: Japanese government bond prices were steady to slightly lower on Tuesday as domestic equities rallied amid reviving risk appetite on the back of a weak yen, capping demand in the debt market.

The Bank of Japan's (BOJ) buying of 1- to 3-year JGBs drew selling of more than five times the size of the BOJ's buying of 250 billion yen, compared to over three times in the previous buying operation last week, pointing to strong selling interest.

The five-year JGB yield rose 0.5 basis point to minus 0.105 percent, while the 10-year JGB yield  rose 0.5 basis point to 0.040 percent.

The 20-year JGB yield was flat at 0.485 percent, while the 30-year JGB yield was also flat at 0.680 percent.

The benchmark 10-year JGB futures were flat at 150.90.

The 40-year JGB yield fell 1 basis point to 0.79 percent.

Japan's Nikkei share average rose to a one-month high, thanks to strong demand in exporters shares on a weaker yen.