TOKYO, May 18 (Reuters) – Japanese government bond prices rose on Monday after a five-year debt auction attracted ample investor demand.
The Ministry of Finance offered 1.9 trillion yen of five-year JGBs, with the bid-to-cover ratio, a gauge of demand, falling slightly to 4.49 from 4.98 at the previous sale in April.
The tail between the average and the lowest accepted prices was at 0.01, in line with the previous auction.
As a result, the five-year cash JGB yield slipped 2 basis points (bps) to minus 0.140%.
Benchmark 10-year JGB futures rose 0.19 point to 152.48, with a trading volume of 11,613 lots, while the 10-year JGB yield fell 1 bp to minus 0.015%.
The two-year JGB yield fell 1 bp to minus 0.180%.
In the superlong zone, the 20-year JGB yield and the 30-year JGB yield fell half a basis point each to 0.340% and 0.470%, respectively.
The market’s response was limited to data that showed Japan’s gross domestic product shrank over January-March, marking the first recession since the second half of 2015 due to the novel coronavirus pandemic.
The economy shrank at an annualised rate of 3.4% in January-March, following a revised 7.3% contraction in the previous quarter. (Reporting by Eimi Yamamitsu; Editing by Subhranshu Sahu)
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