JGB yields steady to lower on month-end buying, solid 2-year auction

  • 6/29/2021
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TOKYO, June 29 (Reuters) - Japanese government bond (JGB) yields were steady to lower on Tuesday after U.S. Treasuries yield dropped due to month-end buying by investors, while firm results of two-year JGB auction also underpinned the market. The 10-year JGB yield fell 0.5 basis point to 0.050%, stuck in its recent trading range between 0.04% and 0.06% as investors looked for more clues on the Federal Reserve’s policy guidance. Benchmark 10-year JGB futures price rose 0.06 point to 151.71. The 20-year JGB yield was flat at 0.430% while the 30-year yield fell 0.5 basis point to 0.680%. The five-year yield was flat at minus 0.100% while the two-year JGB yield was unchanged at minus 0.115%. U.S. Treasuries yield dipped overnight, thanks in part to month-end buying by investors, as the market looks to upcoming U.S. payrolls data for a hint on how quickly the Federal Reserve could start reducing its stimulus. An auction of 3.0 trillion yen two-year JGBs on Tuesday attracted solid bids, with bid-to-cover ratio rising to 4.29 from 3.97 in the previous auction. Reporting by Tokyo Markets Team; editing by Uttaresh.V Our Standards: The Thomson Reuters Trust Principles.

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