Long-dated JGBs rise on pre-holiday buying, weaker stocks

Credit: REUTERS/Thomas White/Illustration

Long-dated Japanese government bond prices gained on Tuesday as investors stepped up purchases ahead of the long Golden Week holiday and a lacklustre session in Tokyo stocks lifted the appeal of debt.

TOKYO, April 23 (Reuters) - Long-dated Japanese government bond prices gained on Tuesday as investors stepped up purchases ahead of the long Golden Week holiday and a lacklustre session in Tokyo stocks lifted the appeal of debt.

Shorter maturities dipped following relatively soft two-year bond auction results.

The 20-year JGB yield JP20YTN=JBTC and the 30-year yield JP30YTN=JBTC fell 1 basis point each to 0.380 percent and 0.570 percent, respectively.

The 40-year yield JP40YTN=JBTC dropped half-a-basis point to 0.610 percent.

The benchmark 10-year yield JP10YTN=JBTC lost 0.5 basis point to minus 0.035 percent.

The two-year yield JP2YTN=JBTC ticked up half-a-basis point to minus 0.150 percent.

Tuesday's 2 trillion yen ($17.89 billion) two-year JGB auction attracted modest demand, including from some foreign buyers.

The bid-to-cover ratio, a gauge of demand, still slipped to 5.04 from an average of 5.328 in the previous five auctions.

The Nikkei share average dipped slightly in early afternoon trade as profit-taking took hold. .T

Starting on Saturday, on Japan will have an unprecedented 10-day holiday from late April to early May to mark the ascension of the new emperor, Crown Prince Naruhito.

($1 = 111.81 yen)

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

((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink; +81-3-6441-1825; Reuters Messaging: daniel.leussink.thomsonreuters.com@reuters.net))

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