TOKYO, July 2 (Reuters) - Japanese government bond futures rebounded from early losses on Thursday after an auction of 10-year bonds drew strong demand.
Benchmark 10-year JGB futures climbed 0.02 point to 151.76, on trading volume of 25,878 lots.
Japan’s finance ministry increased the size of its 10-year JGB auction to 2.6 trillion yen in July from 2.1 trillion yen to fund a stimulus package aimed at combating the coronavirus-hit economy.
The bid-to-cover ratio, or a gauge of demand, was relatively high at 3.66, compared with 3.36 at the previous auction last month.
Following the auction result, the 10-year JGB yield dipped 1.5 basis points to 0.030%, having reached its highest level since late March earlier in the session at 0.050%.
Yields across superlong extended an uptick on supply worries, with the 20-year JGB yield adding half a basis point to 0.440%.
The 30-year JGB yield climbed 1.5 basis points to 0.645%, a level unseen since January 31, 2019.
The 40-year JGB yield rose 1 basis point to 0.675%.
At the shorter end of the market, the two-year JGB yield rose half a basis point to minus 0.140%, while the five-year yield was steady at minus 0.095%. (Reporting by Tokyo Markets Team Editing by Shri Navaratnam)