TOKYO, Aug 8 (Reuters) - Japanese government bond prices dipped on Thursday as stocks found traction after a sustained decline and dented the allure of safe-haven debt.
The five-year JGB yield nudged up by half a basis point to minus 0.285%. The 10-year yield also rose by half a basis point, to minus 0.195%.
JGB yields had declined steadily earlier this week, in line with global peers, as fears of an intensifying U.S.-China trade war hurting global economic growth sent investors scurrying to the safety of government bonds.
But the wider financial markets gained a semblance of calm on Thursday. Japan’s Nikkei stock average was up 0.5% and on track to snap a four-day losing streak.
Thursday’s 400 billion yen ($3.77 billion) 10-year inflation-linked JGB auction attracted ample buyers with the bid-to-cover ratio, a gauge of demand, rising to 3.84 from 3.72 at the previous sale in May.
$1 = 106.1900 yen Reporting by the Tokyo markets team; Editing by Subhranshu Sahu