TOKYO, May 31 (Reuters) - Japanese government bond prices slipped on Thursday as Italian leaders moved to mitigate political turbulence and avoid a potentially disruptive early election, reducing safe-haven bids in bonds.
Prime Minister-designate Carlo Cottarelli said possibilities had emerged “for the birth of a political government,” and that financial market turmoil and other circumstances, “have caused me to wait for further developments.”
The ten-year JGB futures fell 0.07 point to 150.97, with a trading volume of 26,662 lots.
However, the benchmark 10-year cash JGBs were untraded.
The 20-year JGB yield rose 1 basis point to 0.505 percent while the 30-year JGB yield rose 1.5 basis points to 0.715 percent.
The five-year JGB yield rose 0.5 basis point to minus 0.12 percent.
The two-year JGB yield rose 0.5 basis point to minus 0.145 percent.
An auction of 2.0 trillion yen two-year JGBs attracted decent demand, with bid-to-cover falling to 4.91 from 5.39 in the previous auction. (Reporting by Tokyo Markets Team; Editing by Sunil Nair)