JGB yields slump after decent sales seen at 10-year bond auction

Japanese government bond (JGB) yields edged down on Tuesday after an auction for the 10-year bond saw decent demand despite caution ahead of a possible exit from the Bank of Japan’s (BOJ) negative interest rate policy later this month. The 10-year JGB yield fell 1 basis point (bp) to 0.700% following the auction results. Although there were concerns with the 10-year yield at a lower level, analysts said Tuesday’s auction results for the bond of the same maturity were decent.