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JGB yields rise, curve steepens as traders eye Treasury auction

TOKYO, Aug 12 (Reuters) - Yields on longer-dated Japanese government bonds rose on Wednesday, tracking gains in Treasuries ahead of a record auction of 10-year U.S. government debt later in the day.

Japan’s yield curve steepened slightly as long-term yields rose. Short-term yields, however, held steady at a high level as some investors stuck to the sidelines.

The United States will sell a record $38 billion in 10-year notes later in the day and $26 billion in 30-year bonds on Thursday.

Both auctions are an important test of global investor demand for fixed income amid the economic disruptions caused by the spread of the coronavirus.

Benchmark 10-year JGB futures fell 0.17 point to 151.83, with a trading volume of 20,860 lots.

The 10-year JGB yield rose 1 basis point to 0.035%, and the 20-year JGB yield climbed 1.5 basis points to 0.410%.

The 30-year JGB yield rose 1.5 basis points to 0.580%.

The five-year yield was unchanged at minus 0.095%, which was the highest since June 7.

The two-year JGB yield was flat at minus 0.120%, which was the highest yield since April 2. (Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips)

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