Long-dated JGBs rise after solid 20-year debt auction

Credit: REUTERS/Thomas White

Longer-dated Japanese government bond prices rose on Tuesday due to strong investor demand seen during the 20-year debt auction.

TOKYO, Aug 25 (Reuters) - Longer-dated Japanese government bond prices rose on Tuesday due to strong investor demand seen during the 20-year debt auction.

Benchmark 10-year JGB futures 2JGBv1 fell 0.11 point to 151.86, with a trading volume of 16,526 lots, while the 10-year JGB yield JP10YTN=JBTC edged up half a basis point to 0.025%.

At the shorter end of the yield curve, the five-year yield JP5YTN=JBTC rose half a basis point to minus 0.090%.

Tuesday's 1.2 trillion yen 20-year JGB auction drew solid investor interest, with the bid-to-cover ratio, a gauge of demand, rising to 3.92 from 3.80 at the previous auction in July.

In yet another sign of firm demand, the auction's tail, or the gap between the lowest and average prices, slightly tightened to 0.04 from the previous 0.05.

Following the auction result, the super-long zone moved in a different direction, with the 20-year JGB yield JP20YTN=JBTC falling half a basis point to 0.405%.

The 30-year JGB yield JP30YTN=JBTC lost 1 basis point to 0.590%, while the 40-year JGB yield JP40YTN=JBTC fell 1.5 basis points to 0.610%.

(Reporting by Tokyo Markets Team; Editing by Amy Caren Daniel)

((eimi.yamamitsu@thomsonreuters.com;))

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

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More