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JGBs little changed, 10-year auction attracts demand

TOKYO, Aug 1 (Reuters) - Japanese government bond prices were little changed on Tuesday, with the market caught between negative pressure stemming from weaker Treasuries and an upward pull from a well-received 10-year auction.

The benchmark 10-year JGB yield was flat at 0.075 percent and the 20-year yield inched up half a basis point to 0.590 percent.

The bid-to-cover ratio, a gauge of demand, at Tuesday's 2.3 trillion yen ($20.87 billion) 10-year auction was 4.21, compared to 3.90, the average ratio from the previous 10 auctions.

The new 10-year JGBs were seen to have attracted decent investor demand after the Bank of Japan drew a line in the sand last month, offering to buy an unlimited amount of bonds and arresting the rise when the benchmark yield advanced above 0.100 percent.

The JGB market also drew relief after the BOJ announced that it will keep unchanged the amount of bonds it plans to buy at its operations in August. Some participants had braced for the central bank to shave the amount of JGBs it plans to purchase.

U.S. Treasury prices fell on Monday before a heavy week of data, which will culminate in Friday's employment report for July, and as investors waited on Wednesday's refunding announcement for the coming quarter.

($1 = 110.1800 yen) (Reporting by the Tokyo markets team; Editing by Jacqueline Wong)