June 4, 2019 / 5:23 AM / 3 months ago

JGB yields hit three-year lows as market tracks U.S. peers

TOKYO, June 4 (Reuters) - Benchmark Japanese government bond yields touched a three-year low on Tuesday as the market tracked a sharp decline in U.S. Treasury yields.

The benchmark 10-year JGB yield was down half-a-basis point at minus 0.100% after stooping to minus 0.105%, its lowest since August 2016.

The 30-year yield fell 2 basis points to 0.440%, a low last visited in September 2016.

With the bond market on the front foot, Tuesday’s 2.1 trillion yen ($19.45 billion) 10-year JGB auction attracted ample investor demand.

The bid-to-cover ratio, a gauge of demand, at the 10-year sale rose to 3.99 from 3.72 at the previous tender in May.

U.S. Treasury yields on Monday fell to their lowest levels since September 2017 as investors piled more cash into low-risk debt to seek protection from market volatility, and also on expectations of an imminent rate cut from the Federal Reserve.

$1 = 107.9500 yen Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips

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