JGBs gain, upbeat 2-year auction lifts shorter-dated maturities
TOKYO : Japanese government bond prices gained on Monday with the market tracking an overnight rise by U.S. Treasuries.
The shorter-dated JGB maturities outperformed thanks to steady investor demand for new two-year debt.
The two-year yield fell 2.5 basis points to minus 0.210 percent and the benchmark 10-year yield slipped half a basis point to minus 0.075 percent.
The bid-to-cover ratio, a gauge of investor demand, at Tuesday’s 2.3 trillion yen ($ 22.53 billion) 2-year sale rose to 4.44 from 3.95 at the previous auction last month.
Market participants said recent comments by Bank of Japan Governor Haruhiko Kuroda that the central bank would not rule out deepening negative rates supported demand for the new two-year JGBs.
U.S. Treasury prices rose on Monday on bargain hunting by foreign investors following a market selloff Friday that took yields on benchmark 10-year notes to their highest since the June Brexit referendum.
