February 8, 2018 / 6:50 AM / 6 months ago

JGBs edge down, but 30-year sale supports

TOKYO, Feb 8 (Reuters) - Japanese government bonds edged down on Thursday, pressured by weak U.S. Treasuries but were underpinned by solid demand at a 30-year JGB sale.

The 10-year cash JGB yield added 1 basis point to 0.080 percent, while 10-year JGB futures finished down 0.06 point at 150.42.

In the superlong zone, the 20-year yield rose 1 basis point to 0.590 percent, while the 30-year yield was half a basis point higher at 0.815 percent.

The Ministry of Finance offered 800 billion yen of 30-year JGBs with a 0.80 percent coupon, and 92.6464 percent of the bids were accepted at the lowest price of 99.45.

The sale drew bids of 4.27 times the amount offered, up from the previous sale’s bid-to-cover ratio of 3.77 times, indicating stronger demand for the bonds.

Recent weakness in U.S. debt pressured JGBs. The yield on benchmark 10-year Treasury notes rose as high as 2.885 percent on Monday, its highest since January 2014.

The benchmark yield stood at 2.836 percent in Asian trade, compared with its U.S. close of 2.843 percent on Wednesday. (Reporting by Tokyo markets team; Editing by Subhranshu Sahu)

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