Staff of Reuters Read for 2 minutes Reuters, TOKYO, June 29 – On Tuesday, Japanese government bond (JGB) rates were stable to lower as U.S. Treasury yields fell due to month-end buying by investors, while the market was also supported by strong results from a two-year JGB auction. As investors sought additional indications on the Federal Reserve’s policy guidance, the 10-year JGB yield declined 0.5 basis point to 0.050 percent, remaining locked in its previous trading range of 0.04 percent to 0.06 percent. The price of the benchmark 10-year JGB futures increased by 0.06 point to 151.71. The yield on the 20-year JGB remained unchanged at 0.430 percent, while the yield on the 30-year JGB declined 0.5 basis point to 0.680 percent. The yield on the five-year JGB remained constant at minus 0.100 percent, while the yield on the two-year JGB remained unchanged at minus 0.115 percent. The yield on US Treasuries fell overnight, owing in part to month-end purchasing by investors, as the market awaits the release of next US payrolls data to see how swiftly the Federal Reserve will begin to reduce its stimulus. On Tuesday, a 3.0 trillion yen two-year JGB auction drew strong bids, with the bid-to-cover ratio jumping to 4.29 from 3.97 the day before. Tokyo Markets Team contributed reporting, and Uttaresh.V edited the piece.
