May 15, 2018 / 6:56 AM / in 5 months

JGB futures slip, pressured by weakness in U.S. Treasuries

May 15 (Reuters) - The key 10-year Japanese government bond (JGB) futures contract fell to the lowest level in more than two weeks on Tuesday, taking cues from weakness in U.S. Treasuries.

The lead June 10-year JGB futures contract fell 0.09 point to 150.71. Earlier, it slipped to as low as 150.70, its lowest since April 27.

The benchmark 10-year JGB yield rose 1 basis point to 0.055 percent, reaching levels last scaled on April 27.

The Finance Ministry’s auction of 30-year JGBs on Tuesday attracted solid demand. The bid-to-cover ratio was 4.41, exceeding 4.34 at the previous 30-year JGB auction.

Thirty-year JGBs showed some resilience compared to the 10-year instrument, with the 30-year JGB yield edging up by just 0.5 basis point on the day to 0.745 percent.

In U.S. bonds, the benchmark U.S. 10-year Treasury yield rose about 3 basis points in Asian trade on Tuesday to 3.0245 percent, nearing a four-year high of 3.035 percent set in late April.

U.S. Treasuries have come under pressure this week, with their yields having risen after comments from a European Central Bank official triggered a rise in euro zone bond yields, and as concerns over U.S.-China trade tensions eased. (Reporting by Tokyo markets team; Editing by Subhranshu Sahu)

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