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JGBs gain after solid five-year debt auction

TOKYO, July 9 (Reuters) - Japanese government bond prices mostly rose on Thursday as market participants became more inclined to buy debt after a five-year auction drew strong investor demand.

Benchmark 10-year JGB futures gained 0.07 point to 152.1, with a trading volume of 24,094 lots, while the 10-year JGB yield stood flat at 0.015%.

The two-year JGB yield fell half a basis point to minus 0.140%.

Japan’s finance ministry conducted a 2.5 trillion yen five-year JGB sale, wider than the 1.9 trillion yen sale conducted in June.

The bid-to-cover ratio, a gauge of demand, rose to 4.25 from 3.78 at the previous auction last month.

The auction’s tail, or gap between the lowest and accepted prices, was at 0.01.

Following the auction result, the five-year yield went down 1 basis point to minus 0.115%.

In the super-long zone, the 20-year JGB yield stood flat at 0.395%.

The 30-year JGB yield and the 40-year JGB yield dropped 1.5 basis points each to 0.550% and 0.580%, respectively. (Reporting by Tokyo Markets Team; Editing by Devika Syamnath)

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