TOKYO, March 5 (Reuters) - Benchmark Japanese government bond yields crept higher ahead of a 10-year sale on Tuesday, but not before yields marked their lowest in a decade on continued expectations of vigorous easing from the Bank of Japan.
* The government’s nominees to be BOJ deputy governors, Hiroshi Nakaso and Kikuo Iwata, underscored on Tuesday their commitment to beat deflation if appointed.
* The yield on the benchmark 10-year JGB added half a basis point to 0.610 percent after earlier dropping as low as 0.585 percent, its lowest since June 2003.
* The Ministry of Finance offered 2.4 trillion yen ($25.7 billion) of 10-year JGBs with a coupon of 0.6 percent, the lowest since June 2003’s 0.5 percent.
* “Even with that coupon, auction demand will probably be robust due to the timing at the end of the fiscal year, as well as the BOJ expectations,” said a fixed-income fund manager at a Japanese asset management firm.
Japanese investors continued buying ahead of the March 3 financial year-end, he said.
* The 10-year JGB futures contract, slipped 0.12 point after rising to a morning session peak of 145.38, an all-time high.
* Superlong bonds continued their rally, with the 30-year bond yield shedding 1.5 basis points to 1.660 percent, its lowest level since August 2010. In the previous session, the 30-year yield plunged fell 9.0 basis points, its biggest daily fall since mid-2010.
The 20-year yield also wallowed at its lowest levels since mid-2003, losing 1 basis point to 1.480 percent after cratering 9 basis points on Monday.