TOKYO May 18 Japanese government bond prices
gave up early gains on Thursday as U.S. Treasury yields pulled
off their lows and investors took profits after a smooth 20-year
The benchmark 10-year cash JGB yield was flat
at 0.040 percent, up from 0.035 percent earlier, while 10-year
JGB futures ended down 0.04 point at 150.57 after
rising as high as 150.76 in the morning session.
The benchmark 10-year U.S. Treasury yield stood
at 2.245 percent in Asian trading, above its U.S. close on
Wednesday of 2.216 percent.
Treasuries have benefited from safe-haven demand this week,
amid allegations that U.S. President Donald Trump tried to
interfere with a federal investigation. A small but growing
number of Trump's fellow Republicans called on Wednesday for an
independent probe of possible collusion between his 2016
campaign and Russia, and one even mentioned impeachment.
At the Ministry of Finance's sale of 1 trillion yen ($9.02
billion) of 20-year JGBs with a 0.7 percent coupon, some 35.5348
percent of the bids were accepted at the lowest price of 102.40.
The sale drew bids of 3.84 times the amount offered, down
from the previous sale's bid-to-cover ratio of 4.06 times but
still suggesting decent demand for the bonds ahead of the Bank
of Japan's buying operations on Friday.
The 20-year JGB yield shed 2 basis points to 0.570 percent
, after earlier falling as low as 0.560 percent.
MOF data released early on Thursday showed that Japanese
investors bought a net 1.821 trillion yen of foreign bonds in
the latest week through May 13 after buying a net 425.8 billion
yen the week before.
It was the largest amount of foreign buying since the first
week of July last year, and the third-highest total since MOF
began compiling the data in 2005.
($1 = 110.9200 yen)
(Reporting by Tokyo markets team; Editing by Subhranshu Sahu)