October 18, 2018 / 5:10 AM / in 6 months

JGBs slip along with weaker U.S. Treasuries

TOKYO, Oct 18 (Reuters) - Japanese government bond prices slipped on Thursday, with the market weighed down after U.S. Treasuries suffered losses on hawkish-sounding Federal Reserve meeting minutes.

The benchmark 10-year JGB yield edged up 0.5 basis point to 0.150 percent. The 30-year yield also rose 0.5 basis point, to 0.915 percent.

The 20-year yield rose to as high as 0.685 percent but pulled back to 0.680 percent after an auction of the maturity attracted sufficient investor demand.

The bid-to-cover ratio, a gauge of demand, at Thursday’s one trillion yen ($8.89 billion) 20-year JGB auction rose to 4.23 from 4.03 at the previous sale in September.

The new 20-year JGBs were seen to have drawn buyers as they came with a relatively high coupon of 0.7 percent, compared to the 0.5 percent coupon on the issues sold last month.

Treasuries fell in price and their yields rose on Wednesday as the Fed’s minutes from its September policy meeting showed all policy makers agreed to raise key interest rates for a third time in 2018 with many open to further rate hikes. ($1 = 112.4900 yen) (Reporting by the Tokyo markets team; Editing by Simon Cameron-Moore)

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