TOKYO, April 13 The benchmark 10-year Japanese
government bond yield edged down on Thursday to its lowest level
since November and within a whisper of zero, taking its cues
from lower U.S. Treasury yields and underpinned by solid demand
at a 30-year JGB auction.
The benchmark 10-year JGB yield fell one basis point to
0.005 percent, while 10-year JGB futures
were up 0.19 point in afternoon trade at 151.09.
The U.S. benchmark yield approached five-month lows on
Wednesday, prompted by comments by U.S. President Donald Trump
on favouring low interest rates made in a newspaper interview
published in late U.S. trading. It continued to slip in Asian
trading, and last stood at 2.228 percent, down from
the U.S. close of 2.296 percent.
On Thursday, Japan's Ministry of Finance offered 800 billion
yen ($7.35 billion) of 30-year JGBs with a 0.8 percent coupon,
and 98.5832 percent of the bids accepted at the lowest price of
The sale drew bids 3.08 times the amount offered, down from
the previous sale's bid-to-cover ratio of 3.14 times but still
solid. The tail - the gap between the average and lowest
accepted prices - narrowed to 0.07, compared with that of last
month's offering at 0.19, indicating stronger demand for the
The outcome bolstered the superlong tenor, with 30-year
yield slipping 3.5 basis points to 0.775 percent,
its lowest since late January. The 20-year yield fell 1.5 basis
points to 0.570 percent after falling to 0.565
percent earlier, its lowest since late December.
($1 = 108.8000 yen)
(Reporting by Tokyo markets team; Editing by Sam Holmes)