December 7, 2017 / 4:48 AM / a year ago

JGBs edge lower as risk aversion eases

TOKYO, Dec 7 (Reuters) - Japanese government bond prices edged down on Thursday as risk aversion eased and dulled investor demand for safe-haven debt.

The benchmark 10-year JGB yield rose half a basis point to 0.055 percent. The 20-year yield was also half a basis point higher at 0.580 percent.

Pressuring JGBs, Tokyo’s Nikkei was up 1.25 percent as Middle East concerns eased somewhat.

The super-long JGB sector fared better thanks to a well-received 30-year bond auction.

The bid-to-cover ratio, a gauge of demand, at Thursday’s 800 billion yen ($7.12 billion) 30-year sale rose to 4.38 from 3.43 at the previous auction in November.

With the benchmark 10-year yield pinned near zero percent under the Bank of Japan’s easy monetary policy, super-long JGBs attract steady investor demand as they offer relatively higher yields.

The 30-year yield dipped 0.5 basis point to 0.830 percent following the strong auction results. ($1 = 112.3900 yen) (Reporting by the Tokyo markets team; Editing by Sunil Nair)

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