JGBs edge up on decent results at 5-yr bond auction, soft domestic stocks

Credit: REUTERS/© Shohei Miyano / Reuters

Japanese government bond prices gained on Tuesday due to decent results at five-year bond auction and as domestic share prices dipped on uncertainties over the global economic outlook and Sino-U.S. trade frictions.

TOKYO, June 18 (Reuters) - Japanese government bond prices gained on Tuesday due to decent results at five-year bond auction and as domestic share prices dipped on uncertainties over the global economic outlook and Sino-U.S. trade frictions.

The auction of 1.9 trillion yen ($17.55 billion) five-year JGBs drew bids 4.51 times the offer, slightly lower than bid-to-cover of 4.94 in the pervious auction in May. The tail, or the gap between the lowest and average prices, was a tight 0.01.

Japan's Nikkei share average .N225 dropped on nervousness ahead of the U.S. Federal Reserve's policy meeting.

Ten-year JGB futures 2JGBv1 rose 0.05 point to 153.53, with a trading volume of 23,673 lots.

The 10-year JGB yield JP10YTN=JBTC was flat at minus 0.130%, just above its recent low of minus 0.135%, its lowest level since August 2016.

The 20-year JGB yield JP20YTN=JBTC fell 0.5 basis point to 0.230%, edging near last week's near three-year low of 0.220%.

The 30-year JGB yield JP30YTN=JBTC fell 0.5 basis point to 0.360%.

At the shorter end, the benchmark two-year JGB yield JP2YTN=JBTC fell 0.5 basis point to minus 0.205%, while the five-year JGB yield JP5YTN=JBTC was flat at minus 0.230%.

($1 = 108.26 yen)

(Reporting by Tokyo Markets Team; editing by Uttaresh.V)

((hideyuki.sano@thomsonreuters.com; +81 3 6441 1827; Reuters Messaging: hideyuki.sano.thomsonreuters.com@reuters.net ))

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