TOKYO: Japanese government bond (JGB) yields fell on Tuesday, tracking weakness in US peers as weak economic data from China spurred concerns over the health of the global economy.

The 10-year JGB yield fell 1.5 basis points to 0.170% and the 20-year JGB yield fell 2 basis points to 0.765%.

The 30-year JGB yield fell 2 basis points to 1.090%.

In a surprise move, China’s central bank cut key lending rates on Monday to revive demand as key economic indicators slowed in July, with factory and retail activity impacted by Beijing’s zero-COVID policy and a property crisis.

Earlier in the day, a domestic auction for five-year bonds witnessed weak demand, with bids worth 3.40 times the amount available, lower than a bid-cover ratio of 3.92 at the previous auction.

JGB yields mostly flat ahead of five-year debt auction

The five-year yield fell 0.5 basis point to minus 0.010%.

The two-year JGB yield was flat at -0.090%. Benchmark 10-year JGB futures rose 0.23 point to 150.56, with a trading volume of 9,214 lots.

The 40-year JGBs were not traded and the yield remained at 1.230%.