By TOKYO, Feb 10 Reuters Yields on Japanese government bonds pared gains on Wednesday after an auction drew solid demand, but many traders expect yields to rise in the future on hopes of a global economic recovery.
Earlier on Wednesday, a liquidity auction received bids worth 3.10 times the amount available, higher than a bidcover ratio of 2.64 at the previous auction.
Longterm yields are trading near the highest in around two years, supported by an improving growth outlook. Expectations that the Bank of Japan will allow bond yields to trade in a wider range are also a supportive factor.
Benchmark 10year JGB futures barely moved at 151.48, with a trading volume of 21,075 lots.
The 10year JGB yield rose 0.5 basis point to 0.070.
The 20year JGB yield rose 1 basis point to 0.470.
At the long end of the yield curve, the 30year JGB yield was flat at 0.670. The 40year JGB yield was flat at 0.715.
The fiveyear yield was flat at minus 0.100.
At the short end, the twoyear JGB yield rose 0.5 basis point to minus 0.125.
Reporting by the Tokyo markets team; Editing by Krishna Chandra Eluri
Source Reuters
