TOKYO: Strong demand at an auction of 10-year Japanese government bonds supported the market on Thursday, though gains in most tenors evaporated as investors locked in gains.
The Ministry of Finance offered 2.4 trillion yen ($22.00 billion) of 10-year JGBs with a 0.1 percent coupon.
The notes sold at a low of 101.94, and drew bids of 4.11 times the amount offered, the highest in nearly two years and well above the previous sale's bid-to-cover ratio of 3.44 times.
The tail between the average and lowest accepted prices shrank to 0.02 from 0.05 at last month's offering, indicating higher demand for the bonds.
The benchmark 10-year yield edged up half a basis point to minus 0.115 percent after dropping as low as minus 0.125 percent earlier, while June 10-year futures ended down 0.10 point at 151.97.
The superlong zone firmed, with the 30-year JGB yield falling half a basis point to 0.315 percent.
The safe-haven appeal of bonds supported the market, as Japan's Nikkei stock index ended down 2.3 percent on a resurgent yen, which rose to a two-week high against the dollar.
The yen drew added strength from comments by Bank of Japan board member Takehiro Sato, who said on Thursday that he was opposed to deepening negative interest rates.
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