Superlong JGB yields rise before debt auction

By Kevin Buckland TOKYO, March 27 (Reuters) - Superlong Japanese government bond yields rose on Monday as traders adjusted positions ahead of new supply the following day, although trading was overall quiet in the final week of the country's fiscal year. Rises in U.S. Treasury yields in Tokyo trading also added
pressure on yen bond yields as investors digested news that First Citizens would buy large parts of failed Silicon Valley Bank's deposits and loans. The 40-year JGB yield rose 4 basis points (bps) to 1.615% as of 0650 GMT, and earlier reached 1.62% for the first time since March 10, with the finance ministry due to auction 40-year securities on Tuesday. The 30-year yield and 20-year yield each added 2 bps to 1.34% and 1.07% respectively. "From this week, I expect the year-end buying needs of JGB investors will be finishing up, and there's potential for a rebound in yields after the declines since mid-March," Noriatsu Tanji, chief bond strategist at Mizuho Securities, wrote in a client note. Superlong JGB yields had plunged to multi-month lows on March 14, pressured both by year-end demand and declines in overseas yields amid a global rush for the safest assets. Benchmark 10-year JGB futures slipped 0.06 point to 148.64 on Monday. The 10-year cash bond had yet to trade, and last yielded 0.28%. The two-year note also had not traded, last yielding -0.07%. The five-year JGB yield rose 0.5 bp to 0.065%. (Reporting by Kevin Buckland; Editing by Emelia Sithole-Matarise)