Staff of Reuters Read for 2 minutes Reuters, TOKYO, July 6 – Japanese government bond yields closed the day largely higher on Tuesday, after a surge in European yields the day before, but the longest-dated paper benefited from a smooth auction of 30-year notes. The yield on a 10-year Japanese government bond rose 1 basis point to 0.040 percent, while benchmark 10-year JGB futures slid 0.11 point to 152.01, with 23,496 lots traded. The yield on the five-year JGB increased by 1 basis point to minus 0.110 percent, while the yield on the two-year JGB increased by 0.5 basis point to minus 0.115 percent. In the meantime, the yields on 30-year and 40-year JGBs remained unchanged at 0.670 percent and 0.740 percent, respectively. The yield on the 20-year Treasury note increased by 0.5 basis point to 0.415 percent. The so-called bid-to-cover ratio improved to 3.63 from 3.39 at Tuesday’s 30-year JGB auction, indicating a significant increase in demand from the previous sale. A market participant at a domestic securities firm commented, “It was a terrific result.” “Concerns about rising yields have faded, and we’ve seen strong investor interest.” (The Tokyo Markets Team contributed to this report.)/n
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