JGBs edge down on rise in stocks, caution ahead of auction

TOKYO, Feb 19 (Reuters) – Japanese government bond (JGB) prices ticked lower on Wednesday, taking cues from a recovery in domestic equities and on caution ahead of a 20-year Japanese government bond auction.

Benchmark 10-year JGB futures fell 0.09 point to 152.69, retreating from one-week high of 152.83 hit on Tuesday.

The 10-year JGB yield rose 0.5 basis point to minus 0.050%, compared with a two-week low of minus 0.055% hit in the previous session.

The 20-year JGB yield rose 1.5 basis points to 0.240%.

Investors refrained from buying ahead of the auction of 900 billion yen ($8.18 billion) 20-year JGBs that will take place on Thursday.

The 30-year JGB yield rose 1.5 basis points to 0.365%.

In contrast, shorter maturities were resilient.

The two-year JGB yield fell 0.5 basis point to minus 0.160%, while the five-year yield was flat at minus 0.150%.

Japanese shares on Wednesday recouped some losses incurred in the previous session due to Apple’s revenue warning. ($1 = 110.02 yen) (Reporting by Tokyo Markets Team; editing by Uttaresh.V)

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