TOKYO, June 1 Japanese government bond prices
were mostly steady on Thursday, supported by a firm 10-year
auction, but confined to a tight range as Tokyo stocks were on
track to rise for the first time in five days.
The benchmark 10-year JGB yield was unchanged
at 0.040 percent. June 10-year JGB futures inched up 0.03 points
to 150.70, drawing early support from an overnight rise
by U.S. Treasuries.
The bid-to-cover ratio, a gauge of demand, at Thursday's 2.3
trillion yen ($20.73 billion) 10-year sale remained at a
relatively high 3.64, from 3.76 at the previous auction in May.
Analysts said the new 10-year sale attracted sufficient
demand with yields on the maturities hovering around 0.05
percent, which has served as a ceiling since early April.
Japan's Nikkei rose more than 1 percent, buoyed by
upbeat news of Japanese companies' growing capital expenditure
as well as the dollar's ascent from overnight lows against the
Long-dated U.S. Treasury yields touched their lowest in more
than five weeks on month-end buying and U.S. housing data that
fanned doubts that the Federal Reserve would raise interest
rates again in 2017 beyond June.
($1 = 110.9400 yen)
(Reporting by the Tokyo markets team; Editing by Sherry