(Updates with yields of 20- and 30-year JGBs)
By Kevin Buckland
TOKYO, May 20 (Reuters) - The longest-dated Japanese
government bond yields soared to record highs on Tuesday as poor
results at an auction of 20-year debt spurred worries about
demand for so-called super-long securities.
The 20-year JGB yield vaulted as much as 15
basis points (bps) to 2.555%, the highest since October 2000,
after the finance ministry announced the auction results in the
early Tokyo afternoon.
The 30-year JGB yield jumped 13 bps to a
record 3.10%, while the 40-year yield surged 14
bps to 3.59%, the highest since the debt's inception in 2007.
The 10-year JGB yield climbed 4.5 bps to
1.525%, its highest level since March 28.
Mizuho strategist Shoki Omori called the auction results
"lacklustre", "highlighting persistent supply-demand softness in
the super-long sector and fuelling 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.
The two-year JGB yield added 1.5 bps to 0.73%,
the highest since April 3.
Benchmark 10-year JGB futures fell as much as 0.47
yen to 138.78 yen, the lowest since April 2. Bond yields move
inversely to prices.