Economic news

JGB Yields Steady Down on Month-End Buying, 2-Year Auction

TOKYO, June 29 (Reuters) - Japanese government bond (JGB) yields were steady to lower on Tuesday after U.S. Treasuries yield dropped due to month-end buying by investors, while firm results of two-year JGB auction also underpinned the market.

The 10-year JGB yield fell 0.5 basis point to 0.050%, stuck in its recent trading range between 0.04% and 0.06% as investors looked for more clues on the Federal Reserve’s policy guidance.

Benchmark 10-year JGB futures price rose 0.06 point to 151.71.

The 20-year JGB yield was flat at 0.430% while the 30-year yield fell 0.5 basis point to 0.680%.

The five-year yield was flat at minus 0.100% while the two-year JGB yield was unchanged at minus 0.115%. U.S. Treasuries yield dipped overnight, thanks in part to month-end buying by investors, as the market looks to upcoming U.S. payrolls data for a hint on how quickly the Federal Reserve could start reducing its stimulus.

An auction of 3.0 trillion yen two-year JGBs on Tuesday attracted solid bids, with bid-to-cover ratio rising to 4.29 from 3.97 in the previous auction.

Reporting by Tokyo Markets Team; editing by Uttaresh.V

Source: Reuters

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