Japanese government bond prices were steady to slightly firmer on Thursday, taking positive cues from a five-year bond auction that saw ample investor demand.

The safe-haven appeal of debt also increased after a rally in the local equity market slowed a bit as investors weighed multiple challenges surrounding the mass roll-out of a potential COVID-19 vaccine.

Benchmark 10-year JGB futures rose 0.15 point to 151.99, with a trading volume of 19,630 lots, while the 10-year JGB yield fell half a basis point to 0.030%.

At the shorter end of the market, the two-year JGB yield edged down half a basis point to minus 0.145%.

The five-year yield fell 1 basis point to minus 0.105% after Thursday’s 2.5 trillion yen five-year debt auction attracted ample investor interest.

The auction’s tail, or gap between the lowest and accepted prices, tightened to zero from 0.01 in the previous auction.

Yields across the super-long zone were flat, with the 20-year JGB yield at 0.405%, the 30-year JGB yield at 0.650% and the 40-year JGB yield at 0.690%. 

Reuters