May 17, 2018 / 5:27 AM / 6 months ago

JGBs edge lower, stronger equities weigh

TOKYO, May 17 (Reuters) - Japanese government bond prices slipped on Thursday as a bounce by equities curbed investor demand for the safe-haven debt.

A continuing retreat by U.S. Treasuries and the ensuing rise in their benchmark yield to seven-year highs also dented JGB market sentiment.

The 10-year JGB yield rose half a basis point to 0.055 percent and the 30-year yield climbed 1 basis point to 0.760 percent.

The five-year yield managed to remain unchanged during the session at minus 0.100 percent after Thursday’s auction of the maturity attracted ample investor demand.

The bid-to-cover ratio, a gauge of demand, at the two trillion yen ($18.14 billion) five-year auction was 4.20 and roughly in line with 4.46, the average from the previous 10 auctions.

The BOJ regularly buys medium-term JGBs from the market as part of its debt-purchasing scheme, keeping supply of the maturities tight.

Japan’s Nikkei share average followed U.S. stocks higher on Thursday morning after Wall Street gained overnight, with financial stocks rallying on an increase in U.S. bond yields.

$1 = 110.2700 yen Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips

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