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TOKYO: Japanese government bond (JGB) prices slipped on Tuesday, weighed down by weaker U.S. Treasuries and as gains in equities dimmed the allure of safe-haven debt.

Ten-year JGB futures dipped 0.02 point to 151.11, while the yield on benchmark 10-year cash JGBs rose half a basis point to 0.090 percent.

The 20-year JGB yield and 30-year JGB yield  both advanced half a basis point, to 0.600 percent and 0.815 percent, respectively.

The five-year yield gained 0.5 basis point as well, to minus 0.105 percent.

The 40-year yield was little changed, at 0.965 percent, even as an auction of the maturity managed to draw sufficient investor demand.

The bid-to-cover ratio, a gauge of demand, at Tuesday's 400 billion yen ($3.52 billion) 40-year JGB auction came in at 3.85, well above the bid-to-cover ratio of 3.24 at the previous sale in September.

The finance ministry auctions 40-year JGBs every other month.

The benchmark Nikkei share average hit a fresh two-week high in mid-afternoon trade on Tuesday, drawing support from a rally on Wall Street.

U.S. government bond yields rose on Monday, driven by gains in equity prices, and at the start of a week in which the Treasury Department will issue $129 billion of new notes at auction. ($1 = 113.5100 yen)

Copyright Reuters, 2018

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