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JGB Hold Steady after 40-Year Bond Auction Garners Demand

TOKYO, May 27 (Reuters) - Japanese government bond held steady on Thursday, after an auction of 600 billion yen ($5.5 billion) of 40-year paper was met with ample demand.

“It was a good result,” said a market participant at a domestic securities house.

“Even though there was 100 billion yen more bonds on offer this time, the bid-to-cover ratio was the same as the previous auction, confirming solid demand.”

The bid-to-cover ratio, a measure of demand that gauges the size of bids at an auction against the amount of securities sold, was 2.80.

The 40-year JGB yield was flat at 0.725%, while the 30-year yield fell half a basis point to 0.665%.

The 10-year and 20-year yields were unchanged at 0.070% and 0.440% respectively.

Yields on five-year and two-year paper each retreated half a basis point, to -0.105% and -0.135% respectively.

Benchmark 10-year JGB futures rose 0.06 point to 151.58.

(Reporting by Tokyo Markets Team; Editing by Rashmi Aich)

Source: Reuters

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