TOKYO, Sept 26 (Reuters) - Japanese government bonds were on solid footing on Tuesday, as futures edged up on the back of renewed tensions over the Korean peninsula amid an escalating war of words between North Korea and Washington.
December 10-year JGB futures rose 0.07 point to 150.91.
The benchmark 10-year JGB yield was unchanged at 0.020 percent.
Tuesday’s 500 billion yen ($4.48 billion) 40-year JGB auction drew ample investor interest, with the bid-to-cover ratio, a gauge of demand, rising to 3.24 from 3.20 at the previous sale in July.
As 10-year JGB yields hovered around or below zero percent under the Bank of Japan’s yield curve control scheme, 40-year JGBs are one of the few remaining maturities that offer returns to investors.
$1 = 111.5200 yen Reporting by the Tokyo markets team; Editing by Sherry Jacob-Phillips