JGBs edge up on solid auction results, stabilising U.S. bonds – Yahoo Finance

TOKYO, Oct 7 (Reuters) – Japanese government bond prices ticked up on Thursday, thanks to solid results of an auction and after U.S. bond prices stabilised from recent falls on signs policymakers could reach a tentative deal on debt ceiling.

The Ministry of Finance’s liquidity-enhancing auction, in which it issues an additional amount of existing JGBs that will be maturing in five to 15-1/2 years, drew fairly strong demand, market players said.

The 10-year JGB yield fell 0.5 basis point to 0.075%, slipping from a four-month high of 0.080% set on Wednesday.

The 20-year yield dropped 0.5 basis point to 0.445%, while the 30-year JGB yield was flat at 0.680%.

The market was also helped by U.S. Treasuries, which stabilised after recent decline after the Senate’s top Republican said his party would support an extension of the federal debt ceiling into December, a move that would avert a default later this month. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)