JGB yield rises after poor U.S. auction, 10-yr yield at 6-week high - Reuters

TOKYO, Aug 14 (Reuters) - Japanese government bond yields ticked up on Friday, with the benchmark 10-year yield hitting a six-week high, taking cues from surging U.S. bond yields following weak demand at a 30-year bond auction.

The poor U.S. auction results soured sentiment ahead of the Japanese market’s own 30-year bond auction planned on Tuesday, as hopes of a gradual recovery in the global economy reduce the attraction of safe-haven assets.

Benchmark 10-year JGB futures fell 0.25 point to 151.62.

The 10-year JGB yield rose 1.5 basis points to 0.045%, its highest since July 2. On the week, the yield rose 3.5 basis points, the largest increase since early June.

The 20-year JGB yield rose 1.5 basis points to 0.430%, highest level in almost a month while the 30-year yield rose 2.5 basis points to 0.615%, also a near one-month high.

Yields on shorter maturities also rose.

The two-year JGB yield rose 0.5 basis point to minus 0.120% while the five-year yield rose 0.5 basis point to minus 0.080%.

Reporting by Tokyo Markets Team; Editing by Aditya Soni