JGBs mixed after new five-year bonds (Reuters) (18-01-2011)

TOKYO - Japanese government bond prices were mixed on Tuesday after investors snatched up newly offered five-year bonds.

The auction of 2.4 trillion yen ($29 billion) in re-opened five-year JGBs proved solid according to traders, with bids totalling 3.97 times the offer, the highest bid-to-cover ratio since August.

The tail or gap between the average and lowest prices was 0.01, much lower than0.04 last month and below the past 12 months' average of 0.017.

The yield on the five-year cash bonds fell 1.5 basis points on the day to 0.495 percent off a one month high of 0.515 percent hit on Monday.

On the contrary, the yield on the 10-year cash bonds rose 0.5 basis point to 1.215 percent after having briefly risen to a one-month high of 1.230 percent.

The March 10-year Japanese government bond futures prices, lost 0.13 point to 139.75 while the 20-year yield fell 1.0 basis point to 2.030 percent off Monday's one-month high of 2.050 percent. The 30-year yield was flat at 2.190 percent retreating from a one-month high of 2.200 percent hit earlier in the day.

Superlong bonds were more supported after rise in their yields to one-month highs attracted bargain hunters, boding well for Thursday's 20-year JGB auction.

Source: Reuters