June 6, 2017 / 5:41 AM / 4 months ago

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

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)

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