TOKYO, Oct 18 (Reuters) - Japanese government bond prices dipped on Tuesday, weighed down by caution as U.S. and euro zone yields remained elevated near multi-month highs.
JGBs did draw some relief from a well-received 400 billion yen ($3.89 billion) liquidity-enhancing auction, under which the finance ministry regularly supplies the market with off-the-run debt.
The benchmark 10-year JGB yield rose half a basis point to minus 0.055 percent. The 30-year yield was also up half a basis point, at 0.505 percent.
Treasury yields hovered near four-months highs following Federal Reserve Chair Janet Yellen’s remarks last week which suggested that the central bank might tolerate higher inflation.
German Bund yields were at their highest since the Brexit referendum in June, driven in part by a steep climb in British gilt yields. ($1 = 102.9000 yen) (Reporting by the Tokyo markets team; Editing by Subhranshu Sahu)