TOKYO: Japanese government bond prices rose on Thursday, lifted by a weaker Nikkei and firmer U.S. Treasuries.
The debt market was also buoyed after it witnessed steady investor demand at an auction for five-year government bonds.
The benchmark 10-year JGB yield was down half a basis point at minus 0.090 percent and the 30-year yield slipped 1.5 basis points to 0.340 percent.
The bid-to-cover ratio, a gauge of demand, at the 2.4 trillion yen ($24 billion) five-year sale rose to 3.57 from 3.45 at the previous auction in July.
Analysts said the previously expensive five-year JGB zone had become more affordable for investors following a recent spike in yields.
In line with the decline in global debt yields, the five-year yield had fallen to a record low of minus 0.380 percent three weeks ago.
But the yield bounced to as high as minus 0.120 percent at the start of this month as the prospect of the government issuing more bonds to fund its stimulus and uncertainty towards Bank of Japan's monetary policy spoiled market sentiment.
The Nikkei was down more than 1 percent, hurt by a stronger yen.
Treasuries rose on Wednesday as the minutes from the Federal Reserve meeting in July hinted at a general agreement that more data was required before taking a decision to raise interest rates.
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