March 7, 2019 / 4:40 AM / 4 months ago

JGB yields retreat from recent highs as 30-year sale draws demand

TOKYO, March 7 (Reuters) - Japanese government bond prices gained on Thursday, and their yields pulled back from recent highs as a 30-year debt auction attracted ample investor demand and shored up the market.

JGBs were also supported as Japanese stocks slipped to a one-week low and enhanced the allure of safe-haven bonds.

March 10-year JGB futures edged up 0.02 point to 152.54.

The 20-year JGB yield dipped half a basis point to 0.435 percent. The yield had risen to a five-week peak of 0.450 percent earlier in the week.

The bid-to-cover ratio, a gauge of demand, at Thursday’s 700 billion yen ($6.27 billion) 30-year JGB auction was 4.56, compared with 4.19, the average from the past 10 sales.

The new 30-year JGBs were seen to have drawn bids from investors looking to replenish their inventories ahead of the March 31 fiscal year-end.

The Nikkei was down 0.8 percent, with chip-related stocks hit by a decline in their U.S. counterparts.

$1 = 111.6800 yen Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips

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