August 21, 2018 / 5:59 AM / 4 months ago

Longer-dated JGBs gain as 20-year auction attracts firm demand

TOKYO, Aug 21 (Reuters) - Longer-dated Japanese government bond prices rose on Tuesday after a 20-year debt auction attracted firm demand from investors, with the market drawing an additional lift from overnight gains in U.S. Treasuries.

The 10-year JGB yield was flat at 0.090 percent, while the 20-year yield fell 1.5 basis points to 0.600 percent.

The 30-year yield was 2 basis points lower at 0.825 percent.

The bid-to-cover ratio, a gauge of demand, at Tuesday’s 1 trillion yen ($9.05 billion) 20-year auction rose to 4.66 from 4.54 at the previous sale last month.

The new 20-year JGBs were seen to have attracted bids from investors such as life insurers and pension funds, the traditional buyers of super long debt.

Treasuries rose on Monday and the 10-year note yield declined to a six-week low after U.S. President Donald Trump reiterated his displeasure towards the Federal Reserve’s interest rate hikes.

$1 = 110.4900 yen Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips

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