January 9, 2019 / 6:04 AM / 7 months ago

JGBs dip as risk sentiment improves, BOJ keeps purchase steady

TOKYO, Jan 9 (Reuters) - Japanese government bond yields rose on Wednesday as hopes that Washington and Beijing might be on track to reach a deal on trade boosted risk appetite, denting the allure of debt.

The Bank of Japan bought 430 billion yen of five- to ten-year JGBs, the same amount as its previous operation last week.

It drew offers of 1.415 trillion yen, or 3.28 times the purchase amount, much higher than 2.37 times in the previous operation, weighing further on bond prices.

Ten-year JGB futures fell 0.07 point to 152.42.

The 10-year JGB yield rose 1.5 basis points to 0.025 percent, extending its rebound from two-year lows of minus 0.025 percent hit on Friday.

The 20-year JGB yield rose 1.5 basis points to 0.495 percent while the 30-year yield rose 1.5 basis points ahead of Thursday’s auction of 700 billion yen 30-year bonds.

The spread between 10- and 30-year yields stood at 71.5 basis points, the tightest in 5 1/2 months. (Reporting by Tokyo Markets Team; Editing by Shreejay Sinha)

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