JGBs blended ahead of Brexit vote, underpinned by 20-year sale

Japanese government bonds were
blended on Thursday, with rates of longer maturities raised by
solid results of a 20-year auction. Trading bewared as British voters prepared to cast
their tallies later on in the session in a closely divided
referendum on whether to leave or remain in the European Union,
with the current surveys recommending it may opt to stay. The Bank of Japan may have to reduce monetary policy if the
British referendum outcome were to set off a market shock that
could deal an extreme blow to the economy, board member Takahide
Kiuchi said on Thursday.

The benchmark 10-year JGB yield included half a.
basis indicate minus 0.145 percent after earlier rising to a.
two-week high of minus 0.130 percent, while 10-year JGB futures.
edged down 0.03 point to end at 152.13. The Ministry of Finance provided 1.1 trillion yen ($ 10.51.
billion) of 20-year JGBs with a 0.20 percent promo code.

The notes sold at a lowest cost of 99.50, and drew bids of.
3.61 times the quantity provided, above the previous sale’s.
bid-to-cover ratio of 3.36 times.

The tail between the average and lowest accepted prices.
matched that of last month’s offering at 0.15, suggesting strong.
need for the bonds. The superlong zone was firm after the sale, with 20-year.
yield shedding 2 basis points to 0.175 percent,.
while the 30-year yield fell 4.5 basis points to.
0.205 percent.

($ 1 = 104.6500 yen).

( Reporting by Tokyo markets team; Editing by Sherry.
Jacob-Phillips).

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