JGBs dip as stocks bounce but firm 20-yr sale eyed

* Stocks pare losses, gain as yen slides on Geithner comments

* Geithner: No need for dollar to sink further vs euro, yen

* Fair prospects for 20-year auction limit JGB losses

By Shinichi Saoshiro

TOKYO, Oct 21 (BestGrowthStock) – Japanese government bonds dipped on
Thursday as Tokyo stocks rebounded on a sharp slide in the yen,
although losses were limited on the prospect of decent demand at
a superlong debt sale.

Japan’s Ministry of Finance offered 1.1 trillion yen ($13.5
billion) of 20-year JGBs on Thursday, with results due at 0345
GMT.

Market players expect the auction to draw decent investor
demand with the 20 years looking cheap relative to other
maturities sauch as the 10 years.

“The 20-year yield is near 1.800 percent, and its spread with
the 10-year yield also came close to 90 basis points. As such the
auction is expected to draw demand from absolute level buyers,”
said Makoto Noji, a strategist at Mizuho Securities Research and
Consulting.

But Noji said concerns that the U.S. Treasury market may be
overheating could temper demand from some potential buyers.

The 20-year yield (JP20YTN=JBTC: ) was unchanged at 1.760
percent, having climbed from a six-week trough of 1.590 percent
struck earlier this month.

The 10-year/20-year yield spread stood at 86 basis points
after touching a 2-