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JGBs slip as risk appetite improves on China GDP news

TOKYO, Jan 19 (Reuters) - Japanese government bonds slipped on Tuesday as regional risk appetite improved after Chinese economic figures came out in line with expectations, though decent demand at a sale of 5-year notes kept losses in check.

China’s economy grew 6.8 percent in the fourth quarter from a year earlier, the data showed, the slowest growth since 2009, though not as bad as some had feared.

Industrial output in December rose 5.9 percent from a year earlier, compared with forecasts for a 6.0 percent increase.

The helped Japanese stocks erase losses, with the Nikkei stock index ending up 0.6 percent.

March 10-year JGB futures went in the other direction, ending down 0.11 point at 149.56, moving away from a record intraday high of 149.72 notched in the previous session.

The benchmark 10-year yield added 1.5 basis points to 0.215 percent, but remained within sight of a record low of 0.190 percent plumbed last Thursday.

The 5-year yield added 1 basis point to 0.020 percent .

The Ministry of Finance offered 2.5 trillion yen ($21.29 billion) of 5-year JGBs with a 0.10 percent coupon. The bid-to-cover ratio slipped slightly to 4.10 from the previous sale’s 4.25, though the tail between the average and lowest accepted prices was stable at a narrow 0.01. ($1 = 117.4200 yen) (Reporting by Tokyo markets team)

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