April 2, 2018 / 5:40 AM / a year ago

JGB futures hit 2-week low ahead of 10-year bond auction

April 2 (Reuters) - The key 10-year Japanese government bond futures contract touched a two-week low on Monday, weighed down by firm Tokyo shares and position adjustment ahead of a 10-year JGB auction on Tuesday.

The June 10-year JGB futures contract slipped to 150.70 at one point, its lowest since March 15. The contract later cut its losses and last stood at 150.76, down 0.01 point on the day.

Long-term JGBs fell ahead of the Finance Ministry’s auction of 10-year bonds on Tuesday. The benchmark 10-year JGB yield touched a three-week high of 0.050 percent and last stood at 0.045 percent, up 0.5 basis point on the day.

Earlier on Monday, the Bank of Japan announced, as expected, an offer to buy 70 billion yen of 25- to 40-year JGBs at a regular debt buying operation.

Super-long JGBs still weakened, however, due to position adjustment ahead of a liquidity enhancement auction coming up on Thursday, for bonds with 15.5 years to 39 years left until maturity.

The 30-year JGB yield rose 1 basis point to 0.745 percent . (Reporting by Tokyo markets team; Editing by Subhranshu Sahu)

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