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JGB yields rise in line with Treasuries, futures hit 9-week low

TOKYO, June 4 (Reuters) - Yields on Japanese government bonds gained in line with U.S. Treasuries on Thursday, with the benchmark futures dropping to its lowest since late March.

Benchmark 10-year JGB futures fell 0.29 point to 151.76, with a trading volume of 23,209 lots, marking the lowest since March 26.

Meanwhile in the cash bond market, the 10-year JGB yield rose 1.5 basis points to 0.025%, its highest since late March.

The 20-year JGB yield was up 2 basis points to 0.380%, hitting the highest level since April 2019.

Earlier in the day, the Ministry of Finance auctioned 700 billion yen of 30-year bonds, drawing weak demand. The bid-to-cover ratio, a gauge of demand, slipped to 2.84 from 3.69 in the previous auction in May.

The 30-year JGB yield and the 40-year JGB yield gained 2.5 basis points each to 0.540% and 0.575%, respectively.

At the shorter end, the five-year yield rose 1.5 basis points to minus 0.110%, while the two-year JGB yield stood flat at minus 0.170%.

Treasury yields gained on Wednesday, with the benchmark 10-year note rising to the highest level since April, as data showed signs of stabilisation in the U.S. labour market in May, boosting hopes on economic recovery.

Data from the Institute for Supply Management also showed that the U.S. services industry activity pushed off an 11-year low last month. (Reporting by Eimi Yamamitsu; Editing by Rashmi Aich)

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