TOKYO Feb 16 Japanese government bond prices
dipped on Thursday as a subdued liquidity-enhancing auction
dented investor sentiment, with the market also continuing to
feel pressure from the recent retreat by U.S. Treasuries.
Yields rose as an auction by the finance ministry to sell
400 billion yen ($3.51 billion) of off-the-run JGBs, intended to
enhance market liquidity, drew tepid demand.
The benchmark 10-year JGB yield rose 1 basis
point to 0.095 percent and the 30-year yield
climbed 1.5 basis points to 0.905 percent.
The 30-year yield was within the reach of a one-year high of
0.915 percent hit earlier this month.
Longer-dated yields have edged up recently as investors have
been pondering how far the BOJ would go to attain its stated
aims since last September, when the central bank adopted its
"yield curve control" policy, under which it pledged to keep the
10-year yield around zero percent.
($1 = 113.8700 yen)
(Reporting by the Tokyo markets team; Editing by Sherry