JGBs soften on weak global bonds ahead of 10-year debt sale
TOKYO, Dec 5 (IFR) - Japanese government bond (JGB) prices ended the morning session steady to slightly lower on Thursday, tracking a fall in German bunds and U.S. Treasuries the day before and also due to caution ahead of a 10-year JGB auction.
At midday, the benchmark 10-year JGB yield was flat at 0.630 percent while the 20-year yield ticked up 0.5 basis point to 1.490 percent.
The 30-year yield rose 0.5 basis point to 1.660 percent while the five-year yield also rose by the same margin to 0.190 percent.
U.S. and European bonds eased on Wednesday as robust U.S. jobs and new home sales data supported expectations that the Federal Reserve would be encouraged to pare its stimulative bond-buying programme sooner than expected.
In the Japanese market, buyers were cautious as the Ministry of Finance sells 2.4 trillion yen ($23.4 billion) of 10-year JGBs with a 0.6 percent coupon.
The auction results will be due at 12:45 p.m. (0345 GMT). In the when-issued trade, the new bonds were traded at 0.645 percent in the morning.
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