Most JGB Yields Fall after Solid 40Year Auction

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TOKYO, Jan 26 Reuters Yields on most Japanese government bonds JGBs fell on Tuesday after an auction of 40year notes witnessed solid demand, easing concerns around investors low appetite for new debt.

Weighing on yields further was higher demand for safe assets due to worries about a delay in U.S. fiscal stimulus and concerns about the slow pace of coronavirus vaccinations.

Japans finance ministry received bids worth 2.86 times the amount of bonds sold, which was higher than the bidcover ratio of 2.67 at the previous auction of 40year debt in November.

Benchmark 10year JGB futures rose 0.09 point to 151.97, with a trading volume of 10,950 lots.

The 10year JGB yield fell 0.5 basis point to 0.030, while the 20year JGB yield fell 1 basis point to 0.435.

At the long end of the curve, the 30year JGB yield fell 0.5 basis point to 0.650. The 40year JGB yield rose 0.5 basis point to 0.705.

The fiveyear yield fell 0.5 basis point to minus 0.125.

At the short end, the twoyear JGB yield was flat at minus 0.140.

Reporting by the Tokyo markets team; editing by Uttaresh.V

Source Reuters

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