Economy 2 MIN READ

JGB yields fall amid weak demand in domestic auction

May 12, 2022By Reuters

Japan’s government bond yields on Thursday tracked overnight fall in U.S. Treasury yields amid weak demand for a domestic 30-year bond auction.

The 20-year JGB yield JP20YTN=JBTC fell 0.5 basis point to 0.765%. The 30-year JGB yield JP30YTN=JBTC fell 0.5 basis point to 1.015%.

The 10-year JGB yield JP10YTN=JBTC was flat at 0.245%.

Investors found the Ministry of Finance’s auction for 30-year bonds weak, even as its bid-to-cover ratio of 3.08 was almost unchanged from 3.05 at the previous auction.

“The results were weak, as there was a clear gap between investors who made active and cautions bids,” said a market participant at a domestic brokerage.

U.S. Treasury yields fell overnight, after U.S. consumer price data showed the pace of inflation slowed in April, though not enough to ease concerns that the Federal Reserve’s agenda to cool rising prices may induce a recession. US/

The two-year JGBs were not traded and the yield JP2YTN=JBTC remained at -0.050%.

The five-year yield JP5YTN=JBTC fell 0.5 basis point to 0.010%.

The 40-year JGB yield JP40YTN=JBTC rose 0.5 basis point to 1.135%.

Benchmark 10-year JGB futures 2JGBv1 rose 0.12 point to 149.44, with a trading volume of 13,832 lots.

(Reporting by Tokyo markets team; editing by Uttaresh.V)

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