JGBs edge higher as 40-year bond auction attracts ample demand

Credit: REUTERS/Thomas White

TOKYO, May 28 (Reuters) - Japanese government bond (JGB) prices edged higher on Tuesday, with the market sentiment lifted after a 40-year bond auction attracted ample investor demand.

The advance by the JGB market was slowed as Tokyo stocks gained and dented the allure of safe-haven debt.

The 20-year JGB yield JP20YTN=JBTC fell 1 basis point to 0.320%, its lowest since August 2016.

The 30-year yield JP30YTN=JBTC declined 1.5 basis points to 0.490%.

The bid-to-cover ratio, a gauge of demand, at Tuesday's 400 billion yen ($3.65 billion) 40-year JGB sale rose to 3.87 from 3.50 at the previous auction in March.

The new 40-years were seen to have drawn bids from life insurers and pension funds, the core buyers of super-long JGBs.

($1 = 109.4700 yen)

(Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips)

((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging: shinichi.saoshiro.reuters.com@reuters.net +813-6441-1774))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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