July 5, 2018 / 6:09 AM / a month ago

Ultra-long JGB yields hits 1-1/2-yr lows on trade war anxiety

TOKYO, July 5 (Reuters) - Japanese government bond prices rose on Thursday, with yields on super-long bonds hitting their lowest levels in a year and a half, as global trade worries stoked demand for safe-haven debt ahead of a U.S. deadline to impose tariffs on Chinese imports.

Thursday’s 30-year auction attracted ample investor interest, with the bid-to-cover ratio, a gauge of demand, rising to 5.01 from 4.22 in the previous auction.

The 30-year JGB yield declined by 2.0 basis points to 0.670 percent, hitting their lowest since December 2016.

The 40-year yield dropped 2.5 basis points to 0.810 percent, at one point touching 1 1/2-year lows of 0.805 percent.

The 20-year JGB yield declined 1.0 basis point to a 1 1/2-year low of 0.475 percent while the benchmark 10-year yield was flat at 0.030 percent.

September 10-year JGB futures rose 0.04 point to 150.98.

The Nikkei dropped to a three-month low as concerns over the U.S.-China trade row lingered. (Reporting by the Tokyo markets team; Editing by Sunil Nair)

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