January 25, 2018 / 4:39 AM / a year ago

JGBs slip as Mnuchin's dollar comments hit U.S. Treasuries

TOKYO, Jan 25 (Reuters) - Japanese government bond prices slipped on Thursday, nudged lower when U.S. Treasury Secretary Steven Mnuchin backed a weaker dollar and sent U.S. bonds lower.

The benchmark 10-year yield rose 1 basis point to 0.0805 percent and the 30-year yield was 0.5 basis point higher at 0.825 percent.

JGB losses were limited as an auction of 20-year debt attracted ample investor demand and as Japanese stocks suffered losses.

The bid-to-cover ratio, a gauge of demand, at Thursday’s 1 trillion yen ($9.17 billion) 20-year JGB auction was 4.17, slightly above 4.12, the average ratio from the past 10 sales.

Japan’s Nikkei share average dropped to a 10-day low as a stronger yen hurt exporters.

Mnuchin’s comments sparked concerns that a weaker dollar could dampen overseas investor demand for U.S. debt, hurting U.S. Treasuries overnight. ($1 = 109.0100 yen) (Reporting by the Tokyo markets team; Editing by Eric Meijer)

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