April 7 (Reuters) – Superlong Japanese government bond (JGB) prices dipped on Tuesday after a 30-year debt auction drew tepid demand before Prime Minister Shinzo Abe’s expected declaration of a state of emergency.
The bid-to-cover ratio, a gauge of demand, at Tuesday’s 700 billion yen ($6.4 billion) 30-year JGB sale fell to 3.53 from 3.65 at the previous auction in March. The auction’s tail, or gap between the lowest and accepted prices, widened to 0.39 from 0.10 in the previous auction.
Following this, the 30-year cash JGB yield climbed 2.5 basis points to 0.445%, affecting other superlong maturities as well.
The 40-year yield gained 3.5 basis points to 0.455% and the 20-year yield added 2 basis points to 0.315%.
The key 10-year JGB yield rose half a basis point to 0.005%, while benchmark 10-year JGB futures rose 0.05 point to 152.22 in thin trade, with a trading volume of 11,795 lots.
Prime Minister Abe is expected to declare a state of emergency later on Tuesday to stem a rise in new coronavirus infections in major population centres. (Reporting by Tokyo Markets Team, editing by Larry King)
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