Business & Finance

JGB 10-year yield dips, other zones flat in thin trade

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The benchmark 10-year cash bond yield fell 1.0 basis point to 0.965 percent, matching lows hit in December and not far from a one-year low of 0.940 pct hit in November.

Investors' buying came even ahead of Thursday's auction of 2.2 trillion yen in 10-year JGBs, in a sign of firm demand amid the expectations that JGBs will continue to benefit from aversion to euro zone debt.

But other maturities were mostly flat, as investors looked to key events in Europe, including bond auctions in Italy and Spain.

The five-year JGB yield was flat at 0.335 percent , while the 20-year yield was unchanged at 1.745 percent, off its December low of 1.735 percent. Ten-year JGB futures were up 0.01 point at 142.44.

"Trade flows are thin these days and only maturities that had real money flows move," said a trader at a Japanese bank.

Copyright Reuters, 2012