JGB 20-year yield hits 2-1/2 month high ahead of auction
TOKYO, Dec 17 (IFR) - Japanese government bond prices were mixed on Tuesday, with the yields on longer-dated maturities hitting at least 2-1/2 month highs ahead of an auction of 20-year debt.
The Ministry of Finance is selling 1.2 trillion yen ($11.7 billion) of 20-year JGBs with a coupon rate of 1.6 percent later on Tuesday.
The existing 20-year yield inched up 1 basis point to 1.555 percent, its highest level since early October, while the 30-year yield added 2 basis points to 1.760 percent, hitting a three-month peak.
"We expect a certain amount of demand from final investors with the compound rate at 1.58 percent for the first time since the end of September," analysts at Royal Bank of Scotland wrote in a note.
"While the auction schedule has been crowded since the first week of December, there are no auctions with large delta supply after the 20-year auction."
The 10-year yield was unchanged at 0.685 percent.
Ten-year JGB futures eased 5 ticks to 143.81, holding below their five-day moving average of 143.96.
In the short-dated space, the two-year yield dipped 0.5 basis point to 0.090 percent, while the five-year yield was up 0.5 basis point at 0.215 percent.