October 17, 2019 / 5:55 AM / 2 months ago

Most JGBs weaken as 5-year debt auction draws lukewarm demand

SYDNEY, Oct 17 (Reuters) - Prices of most Japanese government bonds edged lower on Thursday after an auction for five-year papers saw tepid demand as investors waited for signs of progress on Brexit negotiations and U.S.-China trade talks.

At Thursday’s 0.9 trillion yen ($8.3 billion) 5-year JGB auction, the bid-to-cover ratio, a gauge of demand, was 3.69, lower than the average 4.56 from the previous 12 auctions.

Benchmark 10-year JGB futures dipped 0.09 points to 154.26 in late afternoon trade, while the yield on the 10-year cash JGBs rose 1.5 basis points to minus 0.150%.

The two-year JGB cash yield rose 1.5 bps to minus 0.255%, its highest in a month, while the five-year yield gained 1 bp to minus 0.275%.

In the super-long zone, the 20-year and the 30-year yields rose 1 bp each to 0.225% and 0.375%, respectively, while the 40-year yield added 0.5 bp to 0.435%. ($1 = 108.7500 yen) (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)

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