World Economy

JGB Yields at Record Lows

JGB Yields at Record LowsJGB Yields at Record Lows

Japanese government bond yields fell to fresh record lows on Tuesday as Tokyo shares fell to a one-week low and generated bids for safe-haven debt, Reuters reported. The benchmark 10-year yield fell 3.5 basis point to a new record low of minus 0.085%. The 20-year yield dropped 5.5 basis points to 0.36%, also a fresh record trough, in reaction to a well-received 30-year debt auction. The bid-to-cover ratio, a gauge of demand, at the ¥800 billion ($7.08 billion) 30-year offering was a solid 4.21, compared to 3.04 from the previous sale in December. Dealers said the new 30-years were auctioned at relatively expensive levels but nevertheless attracted investor demand as the maturities still offered positive yields.