Japan's super-long bond yields hit one-week high ahead of auction
TOKYO, Nov 22 (Reuters) - Yields on super-long Japanese government bonds (JGBs) rose to a week high on Tuesday amid concerns about the outcome of an auction for 40-year notes later in the week.
The 20-year JGB yield rose 0.5 basis point to 1.070%, hitting its highest since Nov. 15.
The 30-year JGB yield climbed to as high as 1.470%, also the highest since Nov. 15, before paring some of the gains to trade up 1.460%
"There will be a 40-year note auction on Friday, and prospects of the outcome are not clear," said Ataru Okumura, a strategist SMBC Nikko Securities.
"The yields on the 40-year notes have fallen from a peak, so there are uncertainties on whether the auction can draw demand from investors, such as life insurers."
The 40-year JGB yield rose 3 basis points to 1.700%, lower than a recent peak of 1.885%.
The 10-year JGB yield, which the Bank of Japan targets as part of its yield curve control (YCC) policy, remained unchanged at 0.240%.
The two-year JGB yield fell 0.5 basis point to -0.025%, while the five-year yield was flat at 0.085%.
Benchmark 10-year JGB futures fell 11 yen to 149.3, with a trading volume of 9,327 lots.
(Reporting by Junko Fujita; Editing by Dhanya Ann Thoppil)
