TOKYO: Japan’s 10-year bond yields were flat on Tuesday, even as an auction for the bonds with the same maturity drew firm demand. The 10-year JGB yield was flat at 0.220%.

The auction received bids worth 5.05 times the amount available, higher than a bid-cover ratio of 4.86 at the previous auction.

“The results were within expectations,” said a market participant at a domestic brokerage.

“It was hard to bid due to a distortion in the yield curve and recent difficulties in hedging futures, but there was probably a demand for covering short positions.”

JGB yields dip ahead of 10-year auction

Uncertainties about the auction outcome sent the benchmark 10-year JGB futures higher at one point, before falling 0.07 point to 148.89, with a trading volume of 8,186 lots.

The 20-year JGB yield rose 3 basis points to 0.910%.

The five-year yield rose 0.5 basis point to 0.015%. The 30-year and 40-year JGBs did not trade, with the 30-year yield staying at 1.255%, and the 40-year at 1.360%.

The two-year JGBs did not traded and the yield remained at -0.070%.