TOKYO, May 11 Reuters Japanese government bond yields dipped on Tuesday, as sharp fall in Japanese stock prices prompted safety bids in JGBs while an auction of 10year JGBs drew fair demand.
The market was underpinned by a riskaverse mood in global financial markets as rising inflation worries hit global stocks, especially those with stretched valuations.
Benchmark 10year JGB futures rose 0.07 point to 151.47 while the yield on the current 10year JGB yield fell 0.5 basis point to a twoweek low of 0.075.
The auction of 2.6 trillion yen 23.89 billion 10year JGBs by the Ministry of Finance on Tuesday attracted bids 3.04 times the offer.
While the bidtocover dropped from 3.54 times in the previous auction, traders said the results were in line with market expectations.
The 20year JGB yield fell 0.5 basis point to 0.440, its lowest in two weeks while the 30year yield was flat at 0.645.
The fiveyear yield was flat at minus 0.100.
1 108.83 yen
Reporting by Tokyo Markets Team; Editing by Rashmi Aich