TOKYO, Sept 1 (Reuters) - Japanese government bond prices edged up on Tuesday, spurred by a strong 10-year debt auction and a slide in Tokyo equities.
The benchmark 10-year JGB yield dipped half a basis point to 0.370 percent, while September 10-year futures rose 0.06 point to 148.02.
The futures initially fell in early trade, taking cues from an overnight retreat by U.S. Treasuries, but reversed course after strong results on the 10-year JGB tender prompted short-covering by dealers.
The bid-to-cover ratio, a gauge of demand, at Tuesday’s 2.4 trillion yen ($19.9 billion) 10-year JGB sale rose to 3.52 from 2.84 at the previous auction in August.
Japan’s Nikkei was down 2.9 percent as weak corporate expenditure and soft China manufacturing data soured sentiment.
$1 = 120.7000 yen Reporting by Tokyo markets team; Editing by Shri Navaratnam