TOKYO, May 20 (Reuters) - Japanese government bond
yields jumped on Tuesday as investors sold the securities after
poor results at an auction of 20-year bonds spurred worries
about demand for super-long debt.
The 10-year JGB yield vaulted 4.5 basis
points (bps) to 1.525%, its highest level since March 28, after
the finance ministry announced the results of the sale in the
early Tokyo afternoon.
Benchmark 10-year JGB futures were last down 0.19
yen at 139.06 yen. Bond yields move inversely to prices.
The 40-year yield surged 10 bps to 3.55%, the
highest level since the debt's inception in 2007.
The 20- and 30-year bonds, as well as the two-year note, had
yet to trade following the release of the auction details.
Mizuho strategist Shoki Omori called the auction results
"lacklustre", "highlighting persistent supply-demand softness in
the super-long sector and fueling concerns over who, if anyone,
will step in to buy."
Brokers and investors "appear reluctant to hold inventory,
raising the likelihood of a sell-off spiral that extends beyond
the 20-year tenor into both the 10-year and 30-year markets,"
Omori said.
The five-year yield rose 1.5 bps to 1.01%, the
highest since April 2, when U.S. President Donald Trump
announced his "Liberation Day" tariffs.
(Reporting by Kevin Buckland; Editing by Varun H K)