June 12, 2018 / 5:01 AM / a year ago

JGBs slip on new offer, market largely on hold

TOKYO, June 12 (Reuters) - Japanese government bonds dipped slightly on Tuesday as the market digested the Ministry of Finance’s offer of 600 billion yen JGBs with five to 15.5 years left to maturity, the only debt auction this week.

The market, which has been locked in a narrow trading band due to the Bank of Japan’s tight control, did not show any reaction to the ongoing summit between U.S. and North Korean leaders.

The Ministry of Finance’s re-offer of JGBs attracted bids 3.03 times the size of offer, slightly less than the bid-to-cover of 3.36 in the previous auction. Still, the auction produced fairly strong prices, underscoring firm demand.

The June 10-year JGB futures fell 0.06 point to 150.78. The September futures, which look set to take over the benchmark status this week, fell 0.04 point to 150.60.

The 10-year cash JGB yield rose 0.5 basis point to 0.045 percent, while the 20-year JGB yield gained 0.5 basis point to 0.520 percent.

The 30-year JGB yield rose 0.5 basis point to 0.725 percent. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)

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