Friday, July 1

JGBs track Treasury yields higher despite moderately solid auction results

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TOKYO — Japanese government bond (JGB) yields rose on Tuesday, tracking firmer US Treasury yields, even as an auction for 30-year bonds was received a moderately solid response.

The 30-year JGB yield rose 2 basis points to 1.050% and the 20-year JGB yield rose 1 basis point to 0.765%.

The auction earlier in the day received bids worth 3.11 times the amount available, almost flat with a bid-cover ratio of 3.08 at the previous auction.

Still, a market participant at a domestic brokerage firm said the outcome was moderately firm as the market found the offer relatively cheap.

US Treasury yields rose to 3-1/2-week highs on Monday before the United States Treasury will this week issue new supply and with data on Friday expected to show still high inflation.

The 40-year JGB yield rose 1.5 basis points to 1.130%.

The 10-year JGBs had not traded and the yield remained at 0.240%.

Benchmark 10-year JGB futures fell 0.22 point to 149.48, with a trading volume of 22,392 lots.

The five-year yield rose 0.5 basis point to minus 0.005%.

The two-year JGBs had not trade and the yield stayed at -0.070%. (Reporting by Tokyo markets team)

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