TOKYO: Japanese government bond prices jumped on Tuesday after a re-offering auction of some existing JGBs drew strong demand.
The 20-year JGB yield fell 5 basis points to 0.990 percent, while the 30-year yield dropped 6 bps to 1.245 percent, reversing some of their sharp spikes in recent sessions.
"Liquidity enhancing auction" of 400 billion yen ($3.38 billion) in some existing 10- and 20-year JGBs drew solid bids of 1.4453 trillion yen ($12.22 billion), the Ministry of Finance said.
Trading in long maturities remained volatile because of illiquid market conditions as many investors stayed away from the market, analysts said. Shorter bonds tracked retreats in US Treasuries following relief that the outcome of an election in Greece did not hurt peripheral European countries asset markets.
The 10-year JGB yield ticked up 1.5 bps to 0.235 percent . The 10-year JGB futures price fell 0.21 points to 148.32.
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