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Bonds News

JGBs flat to slightly firmer ahead of debt auction

TOKYO, Nov 17 (Reuters) - Japanese government bond prices were steady to slightly firmer on Tuesday, as investors stayed on the sidelines ahead of a 20-year bond auction later this week.

Benchmark 10-year JGB futures fell 0.02 point to 152.07, with a trading volume of 12,367 lots, while the 10-year JGB yield stood flat at 0.020%.

In the super-long zone, the 20-year JGB yield to 0.400%.

The 30-year JGB yield and the 40-year JGB yield fell 1 basis point each to 0.645% and 0.685%, respectively.

At the shorter end of the curve, the two-year JGB yield was flat at minus 0.150%, while the five-year yield bucked the overall trend to gain half a basis point to minus 0.115%.

Trading was relatively thin as investors refrained from taking big positions ahead of Wednesday’s 1.2 trillion yen 20-year JGB auction, analysts said.

Moderna Inc said on Monday its experimental COVID-19 vaccine was 94.5% effective in preventing infection based on interim late-stage data, becoming the second U.S. drugmaker after Pfizer Inc to report results that far exceed expectations.

The appeal of safe-haven debt faded as hopes for a swift economic recovery revived following the vaccine news, but was tempered by rising new coronavirus cases, both at home and abroad.

The Bank of Japan maintained the size of its JGB purchase, buying one-to-three year notes worth 500 billion yen as well as three-to-five and five-to-ten year maturities worth 420 billion yen each. (Reporting by Tokyo markets team; Editing by Rashmi Aich)

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