JGBs inch lower tracking Treasuries, firm 30-yr sale limits losses

By Kitco News / June 06, 2017 / www.kitco.com / Article Link

TOKYO, June 6 (Reuters) - Japanese government bond prices inched down on Tuesday with the market weighed down by an overnight slip in U.S. Treasuries, although firm demand for new 30-year debt helped contain the losses.

The benchmark 10-year JGB yield was half a basis point higher at 0.050 percent. The 20-year yield was unchanged at 0.560 percent.

The bid-to-cover ratio, a gauge of demand, at Tuesday's 800 billion yen ($7.28 billion) 30-year JGB auction rose to 3.63 from 3.35 at the previous sale.

The new JGBs were seen to have attracted ample investor demand as the 30-years had become relatively cheap compared to other super longs like the 20-years.

Treasury debt prices fell on Monday, as investors booked profits after gains the previous session on a U.S. employment report that underwhelmed expectations and suggested a more cautious Federal Reserve policy beyond June. ($1 = 109.8400 yen)


(Reporting by the Tokyo markets team)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities,securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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