JGBs mostly steady, 30-year auction draws demand

TOKYO, Aug 8 (Reuters) - Japanese government bond prices were mostly steady on Tuesday after an auction of 30-year debt proceeded smoothly and drew ample investor demand.

The two-year yield was flat at minus 0.110 percent and the 10-year yield inched down half a basis point to 0.070 percent. The 30-year yield was flat at 0.875 percent.

The bid-to-cover ratio, a gauge of demand, at Tuesday's 800 billion yen ($7.23 billion) 30-year auction rose to 3.90 from 3.62 at the previous auction last month.

The new 30-year auctions were supported on prospects of the Bank of Japan conducting a number of regular JGB-purchasing operations aimed towards longer-dated bonds through the rest of the month.

A light auction calendar was also seen to have favoured the new 30-years, with the JGB market not facing another major sale until the 5-year offering on Aug. 17.

($1 = 110.5800 yen) (Reporting by the Tokyo markets team; Editing by Sherry Jacob-Phillips)