March 9, 2017 / 4:38 AM / 5 months ago

JGBs retreat on weaker Treasuries, subdued 5-year auction

TOKYO, March 9 (Reuters) - Japanese government bond prices fell on Thursday, weighed down by a slide in U.S. Treasuries and subdued response to a five-year debt auction.

The benchmark 10-year JGB yield rose 2 basis points to 0.090 percent, its highest since Feb. 22.

The bid-to-cover ratio, a gauge of demand, at Thursday's 2.4 trillion yen ($20.97 billion) five-year auction slipped to 2.86 from 4.26 at the previous sale in February.

The auction drew lukewarm investor demand as the five-years had become expensive, with the maturity's yield having sunk to 2-1/2-month lows prior to the sale, analysts said.

The midterm zone underperformed after the auction results were released, with the five-year yield rising 2.5 basis points to minus 0.125 percent.

Treasury yields jumped on Wednesday, with the two-year yield hitting its highest levels in more than 7-1/2 years, as a strong gain in U.S. private-sector jobs in February cemented expectations that the Federal Reserve would raise interest rates next week.

$1 = 114.4400 yen Reporting by the Tokyo markets team

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