TOKYO: Japanese government bond (JGB) yields rose on Tuesday, tracking overseas yields higher, even as a domestic auction showed strong demand.

The auction for two-year bonds received bids worth 5.43 times the amount available, higher than a bid-cover ratio of 4.34 at the previous auction.

The two-year JGB yield fell 0.5 basis point to -0.075%, but yields on longer ended-notes rose.

The five-year yield rose 0.5 basis point to 0.005%.

The 10-year JGB yield rose 0.5 basis point to 0.235% and the 20-year JGB yield rose 0.5 basis point to 0.745%.

JGB yields flat as stocks rally offsets debt demand

"The auction results were strong, but it did not become a market moving cue, rather, inventors paid attention to a rise in overseas bond yields," said a market participant at a domestic brokerage.

The 30-year JGB yield rose 1.5 basis points to 1.015%.

The 40-year JGB yield rose 1 basis point to 1.085%. US treasuries slumped on return from Monday's US holiday, sending the yield of the 10-year bond up nearly 10 basis points (bps) to 2.8405%.

German bund yields rose 8.1 bps overnight after German consumer prices increased at their fastest pace in half a century.

Benchmark 10-year JGB futures fell 0.18 point to 149.73, with a trading volume of 14,340 lots.