TOKYO:  Yields on Japanese government bonds slipped on Tuesday, as sentiment was weighed by uncertainty over US stimulus talks and the global economic outlook due to a surge in coronavirus cases.

Benchmark 10-year JGB futures rose 0.1 point to 152.03, with a trading volume of 13,091 lots, while the 10-year JGB yield fell half a basis point to 0.025 percent.

Japan’s finance ministry conducted a 3 trillion yen two-year JGB sale, drawing an ample investor demand.

The bid-to-cover ratio, a gauge of demand, fell marginally to 3.98 from 4.02 at the previous auction last month.

The auction’s tail, or gap between the lowest and accepted prices, was at 0.06.

The five-year yield was flat at minus 0.100 percent.

The 20-year JGB yield stood flat at 0.405 percent, while the 30-year JGB yield and the 40-year JGB yield inched down half a basis point to 0.635 percent and 0.665 percent, respectively.

A wave of coronavirus infections sweeping across the United States, Russia, France and many other countries has clouded the global economic outlook, with record numbers of new cases forcing some countries to impose fresh curbs.

Increasing the appeal of the safe-haven debt was lack of progress on the US coronavirus relief package, although House of Representatives Speaker Nancy Pelosi remained hopeful a deal could be reached before the Nov. 3 elections.

Reuters