August 9, 2018 / 8:56 AM / 2 months ago

JGBs steady; 30-year auction attracts demand

(Adds weekly purchase data from Osaka Exchange, updates levels throughout)

TOKYO, Aug 9 (Reuters) - Japanese government bond prices were little changed on Thursday, but bonds with 30 years to maturity firmed due to an upward pull from a well-received auction, and underpinned solid demand at current levels.

The auction drew bids 4.68 times the offer, higher than the average bid-to-cover ratio of 4.135 from the previous 12 auctions, while the lowest accepted price was in line with market expectations at 96.35.

Ten-year JGB futures eased 0.03 point to 150.07, with a trading volume of 24,606 lots.

The benchmark 10-year JGB yield inched up half a basis point to 0.110 percent, while the 20-year yield fell 1 basis point to 0.615 percent.

The 30-year JGB yield dropped 1 basis point to 0.850 percent, a day after it climbed 0.860 percent, its highest level since early November.

Overseas investors sold a net 2.28 trillion yen ($20.5 billion) of JGBs in the week ended Aug. 3, data from the Osaka Stock Exchange showed.

It was the largest net selling since March 2014, when Japan Exchange Group began compiling data, and was the third consecutive weekly outflow.

During that week, 10-year futures fell to a one-year low as the Bank of Japan allowed JGB yields to move in a bigger band.

$1 = 111.00 yen Reporting by Tomo Uetake; Editing by Sherry Jacob-Phillips and Sunil Nair

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