Superlong JGBs dip on new supply

Mon Feb 24, 2014 10:16pm EST

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TOKYO, Feb 25 (IFR) - Superlong Japanese government bond prices edged lower on Tuesday as market participants sold to make room for a fresh batch of 40-year debt.

A surge in Tokyo stocks also dented investor appetite for safe-haven bonds.

The 20-year yield rose 0.5 basis point to 1.465 percent and the 30-year yield climbed 1 basis point to 1.650 percent.

The Ministry of Finance offered 400 billion yen ($3.9 billion) of 40-year JGBs on Tuesday. The auction results will be released at 0345 GMT.

Traders anticipate decent demand for the new 40-years, supported by the Bank of Japan's bond purchasing operations.

The benchmark 10-year JGB yield stood unchanged at 0.590 percent.

The Nikkei stock average gained 2 percent, tracking a surge in U.S. equities on Monday.

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