30Y JGB Yields Fall, Reversing Course after Smooth Auction

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TOKYO, June 8 Reuters Longerdated Japanese government bond yields declined on Tuesday following a smooth auction of about 900 billion yen 8.23 billion of 30year debt.

The 30year JGB yield fell 0.5 basis point to 0.685, after earlier climbing to a morethantwomonth high of 0.695.

Yields on 20year paper declined 1 basis point to 0.445.

The bidtocover ratio rose to 3.39 at Tuesdays sale, up from 3.12 at the previous tender of 30year JGBs on May 13.

Trading was subdued again like Monday, with fiveyear securities untraded as of 0525 GMT.

The 10year JGB yield was flat at 0.075, and the twoyear yield was also unchanged at minus 0.125.

Benchmark 10year JGB futures rose 0.07 point to 151.61, with a trading volume of 26,730 lots.

Since the U.S. nonfarm payrolls report, volatility in U.S. rates has dropped, leading to a heightened sense of stasis in the Japanese bond market, said Ataru Okumura, a strategist at SMBC Nikko Securities.

1 109.4200 yen

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Source Reuters

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