JGB yields steady in thin trading; solid demand at linker auction

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TOKYO, May 16 (Reuters) - Japanese government bond yields were steady in subdued trading on Monday as investors took a wait-and-see stance amid signs U.S. Treasury yields might have peaked.

The 10-year JGB yielded 0.24% as of 0555 GMT, unchanged from the end of last week, despite a tick down in equivalent Treasury yields to about 2.91% in Tokyo on Monday, from as high as 3.203% a week ago, a level not seen since late 2018.

Benchmark 10-year JGB futures barely moved at 149.52, with a trading volume of 9,708 lots.

However, an auction of inflation-linked 10-year JGBs was easily digested by the market.

"With longer-term worries about inflation as the backdrop, this auction result confirmed solid demand" for inflation-linked debt, said a market participant at a domestic securities company.

The 20-year JGB yield rose 0.5 basis point to 0.750%, and the 30-year yield advanced by the same amount to 1.000%.

Benchmark two- and five-year JGBs had not changed hands, and last yielded -0.060% and 0.005%, respectively. (Reporting by Tokyo markets team; Editing by Aditya Soni)

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