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Long-dated JGBs rise after solid 20-year debt auction

TOKYO, Aug 25 (Reuters) - Longer-dated Japanese government bond prices rose on Tuesday due to strong investor demand seen during the 20-year debt auction.

Benchmark 10-year JGB futures fell 0.11 point to 151.86, with a trading volume of 16,526 lots, while the 10-year JGB yield edged up half a basis point to 0.025%.

At the shorter end of the yield curve, the five-year yield rose half a basis point to minus 0.090%.

Tuesday’s 1.2 trillion yen 20-year JGB auction drew solid investor interest, with the bid-to-cover ratio, a gauge of demand, rising to 3.92 from 3.80 at the previous auction in July.

In yet another sign of firm demand, the auction’s tail, or the gap between the lowest and average prices, slightly tightened to 0.04 from the previous 0.05.

Following the auction result, the super-long zone moved in a different direction, with the 20-year JGB yield falling half a basis point to 0.405%.

The 30-year JGB yield lost 1 basis point to 0.590%, while the 40-year JGB yield fell 1.5 basis points to 0.610%. (Reporting by Tokyo Markets Team; Editing by Amy Caren Daniel)

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