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Most JGB yields rise, while solid auction supports longest tenors | Reuters

Yields on Japanese government bonds ended mostly higher on Tuesday, taking cues from a spike in European yields in the previous session, while the longest-dated paper got support from a smooth auction of 30-year debt.

The 10-year JGB yield rose 1 basis point to 0.040%, while benchmark 10-year JGB futures fell 0.11 point to 152.01, with a trading volume of 23,496 lots.

The five-year yield rose 1 basis point to minus 0.110%, and the two-year JGB yield rose 0.5 basis point to minus 0.115%.

Meanwhile, 30-year and 40-year JGB yields ended flat at 0.670% and 0.740%, respectively. The 20-year yield rose 0.5 basis point to 0.415%.

Demand at Tuesday’s 30-year JGB auction increased markedly from the previous sale, with the so-called bid-to-cover ratio improving to 3.63 from 3.39.

“It was a good result,” said a market participant at a domestic securities firm.

“Concerns about a rise in yields have dissipated, and we saw solid demand from investors.” (Reporting by Tokyo Markets Team)

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