TOKYO, Nov 14 (Reuters) - Japanese government bonds mostly edged down on Tuesday, taking their cue from U.S. Treasuries but underpinned by decent demand at a five-year JGB sale and the Bank of Japan governor reiterating the BOJ’s commitment to easy monetary policy.
The benchmark 10-year cash JGB yield was up half a basis point at 0.050 percent, while the 10-year JGB futures contract ended flat at 150.71.
In the superlong zone, the 20-year JGB yield and the 30-year JGB yield both added one basis point to 0.590 percent and 0.830 percent, respectively.
The yield on two-year U.S. Treasury notes rose to a nine-year high on Monday, as the U.S. yield curve resumed its flattening and investors priced in a 25-basis-point hike in interest rates by the Federal Reserve next month.
The Ministry of Finance offered 2.2 trillion yen ($19.37 billion) of five-year JGBs with a 0.10 percent coupon, and 53.5278 percent of the bids were accepted at the lowest price of 101.00.
The sale drew bids of 4.19 times the amount offered, indicating solid demand though down from the previous sale’s bid-to-cover ratio of 4.24.
The 5-year JGB yield was flat at minus 0.105 percent.
The BOJ will continue to persist with “powerful monetary easing” to nurture positive inflation developments, BOJ Governor Haruhiko Kuroda said in Zurich on Monday.
$1 = 113.6000 yen Reporting by Tokyo markets team; Editing by Eric Meijer