Economic news

JGBs Little Changed; 20-yr Auction sees Subdued Demand

Japanese government bonds (JGBs) were little changed on Thursday as investors sought more clarity from the U.S. Federal Reserve on its policy, while the 20-year yield dipped after an auction of that tenor saw modest demand.

The 10-year JGB yield was flat at 0.050%.

The yield on 20-year JGBs fell 0.5 basis point to 0.420% after the auction of 1.2 trillion yen bonds.

The bid-to-cover ratio rose to 3.62 from 3.48 in the previous auction while the tail, or the difference between lowest and average prices, shrank to 0.06 from 0.10.

The 30-year yield rose 0.5 basis point to 0.665%.

At the shorter end, the two-year JGB yield was flat at minus 0.115%, while the five-year yield was unchanged at minus 0.100%.

Benchmark 10-year JGB futures fell 0.03 point to 151.65, with a thin trading volume of 13,540 lots.

($1 = 110.8400 yen)

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

Source: Reuters


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