TOKYO Feb 28 Japanese government bond prices
edged down on Tuesday following an overnight retreat by U.S.
Treasuries, although the short-end of the curve held firm helped
by a well-received two-year debt auction.
The benchmark 10-year JGB yield rose half a
basis point to 0.050 percent.
Yields were confined to a tight range as a wait-and-see mood
prevailed before U.S. President Donald Trump's address to
Congress later in the day.
Also in focus was the Bank of Japan's announcement of
details for next month's bond buying operations at 0800 GMT. The
central bank holds roughly a third of JGBs and how it conducts
its bond purchasing operations is of chief interest to dealers
Through its purchases the BOJ has significantly tightened
the supply of JGBs, and Tuesday's 2.3 trillion yen ($20.43
billion) two-year auction attracted firm investor demand under
The bid-to-cover ratio, a gauge of demand, at the auction
was at 3.93. While this was lower than the 5.18 from the
previous two-year sale in January, dealers generally consider a
ratio above 2.0 as satisfactory.
The two-year yield was half a basis point
lower at minus 0.275 percent.
($1 = 112.5700 yen)
(Reporting by the Tokyo markets team; Editing by Jacqueline