May 2, 2018 / 5:03 AM / in a year

JGBs slip on position unwinding ahead of Golden Week holidays

TOKYO, May 2 (Reuters) - Japanese government bond prices edged down on Wednesday as market players lightened their positions after the recent rally and ahead of an event-packed long weekend in Japan.

Japanese markets will be closed from Thursday to Sunday for the Golden Week holidays, during which the U.S. Federal Reserve will announce its policy decision and the U.S. payroll data is due.

“It’s mainly driven more by position adjustments ahead of the long weekend given there are a lot of events,” said Naoya Oshikubo, a strategist at Barclays.

A re-offering of 400 billion yen ($3.65 billion) JGBs with one to five years left to maturity on Wednesday attracted less bids than the previous auction, with bid-to-cover falling to 3.65 from 4.91 last time.

Still, on the whole, the auction produced fair results, market players said.

Ten-year JGB futures fell 0.08 point to 150.80 and were on course to mark their first fall in four sessions.

The benchmark 10-year JGB yield rose 0.5 basis point to 0.040 percent.

The 20-year JGB yield rose 1.0 basis point to 0.520 percent and the 30-year JGB yield ticked up 1.0 basis point to 0.725 percent.

The two-year JGB yield rose 1 basis point to minus 0.135 percent, while the five-year JGB yield rose 1.5 basis points to minus 0.105 percent.

$1 = 109.71 yen Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu

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