LongTerm JGB Yields Fall as 20Year Auction Soothes Nerves

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TOKYO, April 20 Reuters Yields on longerdated Japanese government bonds fell on Tuesday, after an auction of 20year notes drew reasonably strong demand, easing concerns about investor appetite for new debt coming to market.

The lowest price accepted at the finance ministrys auction of 20year bonds was higher than traders expectations, which is an indication of healthy demand, according to a bond analyst.

Japanese investors are also watching an auction of U.S. 20year Treasuries on Wednesday, as it will be an important test of global appetite for fixed income, traders said.

If the Treasury auction goes well, bond yields could continue to fall in major economies, traders said. However, a disappointing auction could cause yields to spike higher, they added.

Benchmark 10year JGB futures fell 0.06 point to 151.37, with a trading volume of 16,316 lots.

The 10year JGB yield was flat at 0.080.

The 20year JGB yield fell 1 basis point to 0.435, and the 30year JGB yield fell 1 basis point to 0.640.

At the long end of the curve, the 40year JGB yield fell 1.5 basis points to 0.675.

The fiveyear yield rose 0.5 basis point to minus 0.095, but the twoyear JGB yield was unchanged at minus 0.135.

Reporting by the Tokyo markets team; Editing by Rashmi Aich

Source Reuters

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