June 26, 2014 / 6:05 AM / 4 years ago

JGBs edge up, 2-year auction well received

TOKYO, June 26 (IFR) - Japanese government bond prices edged up on Thursday, taking cues from overnight gains by U.S. Treasuries.

The yield curve flattened as pension funds bought the longer-dated maturities for month-end duration extensions.

An auction of 2-year JGBs was well received by the market, with the bid-to-cover ratio, a gauge of demand, coming in at 4.83. The market considers a figure above 2 as a decent outcome.

The benchmark 10-year yield fell 0.5 basis point to 0.565 percent and the 20-year yield declined 1.5 basis points to 1.415 percent.

U.S. Treasuries’ prices rose on Wednesday after revised U.S. first quarter gross domestic product data showed the economy contracted more than expected. (Reporting by Masatsugu Hisatsune; Editing by Simon Cameron-Moore)

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