July 14, 2020 / 6:22 AM / a month ago

JGBs rise on fresh worries over virus, Sino-U.S. tensions

TOKYO, July 14 (Reuters) - Japanese government bond prices edged up on Tuesday as renewed concerns about U.S. coronavirus infections and simmering U.S.-China tensions hurt investors’ risk appetite.

A liquidity-enhancing auction of five to 15-year bonds, in which the Ministry of Finance re-offers existing issues in those maturities, attracted solid bids, also underpinned the market.

The auction’s bid-to-cover ratio rose to 3.90 from 3.28 in the precious offer.

Benchmark 10-year JGB futures rose 0.07 point to 152.14, with a trading volume of 15,744 lots. In the cash bond market, the 10-year JGB yield fell 0.5 basis point to 0.020%.

The 20-year JGB yield fell 0.5 basis point to 0.420%, while the 30-year JGB yield was flat at 0.595%.

The fall in JGB yields came as Japanese stock prices slipped in line with their global peers after California fresh re-introduced coronavirus restrictions.

The Bank of Japan is widely expected to keep its key interest rates on hold in its monetary policy meeting on Wednesday.

Reporting by Tokyo Markets Team; Editing by Rashmi Aich

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