JGB prices slip; 5-year yield hits 2-week high before Wed's auction

Mon Oct 14, 2013 10:22pm EDT

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TOKYO, Oct 15 (IFR) - Japanese government bond prices slipped on Tuesday, with the five-year yield hitting a two-week high ahead of an auction of the same maturity the following day.

Gains in Tokyo's Nikkei share average also kept JGB prices on the back foot. The Nikkei rose 0.5 percent on optimism that U.S. lawmakers would soon reach a deal to end a partial government shutdown and raise the borrowing limit to avert a possible debt default before the Thursday deadline.

The 10-year yield added 0.5 basis point to 0.6550 percent, while 10-year JGB futures dipped 0.06 point to 144.32.

The five-year yield was up 0.5 basis point at 0.235 percent, its highest level since Oct. 2.

The Ministry of Finance is to sell 2.7 trillion yen ($27.5 billion) worth of five-year bonds on Wednesday.

Yields on longer-dated debt also rose. The 20-year yield was up 1.5 basis points at 1.525 percent and the 30-year yield rose 2 basis points to 1.660 percent, hitting a one-week high.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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