TOKYO Dec 8 The Japanese government bond yield
curve flattened a touch on Thursday on relief after an auction
of 30-year debt managed to attract some demand after early
indications had suggested a weaker outcome.
The benchmark 10-year yield was up half a
basis point at 0.035 percent, but off an earlier high of 0.040
percent. The 20-year yield was down 0.5 basis
point at 0.500 percent.
The 800 billion yen ($7.06 billion) 30-year auction results
were not particularly strong, with the bid-to-cover ratio, a
gauge of demand, slipping to 2.85 from 3.50 at the previous
Still, the market was relieved as expectations towards the
sale were low to begin with. Although not impressive, the
results still showed that a degree of demand from investors
still existed for the 30-years despite the headwinds facing the
market, notably the recent surge in global yields.
"As 30-year yields have risen about 10 basis points since
the previous sale (in October), it appears to have attracted
buyers with long-term investments in mind," said Makoto Suzuki,
senior fixed-income strategist at Okasan Securities.
($1 = 113.3900 yen)
(Reporting by the Tokyo markets team; Editing by Shri