JGBs edge down, 20-year sale in focus

24 Nov, 2015

TOKYO: Japanese government bonds eased on Tuesday as investors caught up after a long holiday weekend and prepared their portfolios for the next session's 20-year sale.

The Bank of Japan offered to buy a total of 1.1 trillion yen ($8.96 billion) in JGBs under its asset purchase plan, including 400 billion yen of JGBs in the 3- to 5-year zone, and 400 billion yen of JGBs maturing between five and 10 years.

The central bank offered to buy only 300 billion yen of one-year to three-year bonds, compared with 400 billion yen at its last purchase offer, which pressured that sector in spot trading.

The 2-year JGB yield added 2.5 basis points to -0.005 percent, after it fell as low as -0.030 percent on Friday, its lowest since January.

The yield on the 10-year cash bond added 1 basis point to a nearly two-week high of 0.320 percent.

The 10-year JGB futures price ended down 0.02 point at 148.37.

The yield on 20-year JGBs edged up half a basis points to 1.080 percent, a day before Japan's Ministry of Finance is scheduled to auction 1.2 trillion yen of the notes.

Copyright Reuters, 2015

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