TOKYO, Oct 6 (Reuters) – Japanese government bond prices dropped on Tuesday as investor risk aversion, triggered on news of U.S. President Donald Trump’s COVID-19 infection, eased after he returned to the White House, assuaging fears over political uncertainty.
Benchmark 10-year JGB futures 2JGBv1 fell 0.16 point to 151.92, with a trading volume of 21,214 lots.
The 10-year JGB yield JP10YTN=JBTC rose 1.5 basis points to 0.035%, the highest level unseen since Sept. 11.
In the super-long zone, the 20-year JGB yield JP20YTN=JBTC rose 1 basis point to 0.410%, also marking the highest level since mid-September.
The Ministry of Finance’s sale of 30-year JGBs attracted bids 3.51 times the offer of 900 billion yen ($8.52 billion), in line with bid-to-cover ratio of 3.50 at the previous auction in September.
The auction’s tail, the gap between the lowest and average prices, slightly narrowed to 0.14 from 0.16 last month.