JGBs rise on Greek debt fears, solid 10-year sale
TOKYO May 9 (Reuters) - Japanese government bond prices gained on Wednesday, with the 10-year yield revisiting a 19-month low, after the previous day's solid 10-year auction and a flare-up of concern about Greece's debt crisis improved sentiment towards fixed-income assets.
* Greece struggled to form a government after weekend elections cast the future of its austerity steps into doubt. If the country does not follow the pledges it made in exchange for a European Union/International Monetary Fund bailout, officials estimate it could run out of money as soon as next month.
* A 10-year JGB sale on Tuesday with a 0.900 percent coupon met strong demand even with benchmark yields trading around 1-1/2 year lows.
* "With stocks weakening and the yen strengthening, there are few investment choices for Japanese investors, so we keep buying JGBs. Even though our stomachs are full, we still have to keep eating," said a fixed-income fund manager at a Japanese trust bank.
* The 10-year JGB yield fell 1 basis point to 0.855 percent, matching a low hit on Monday, which was its lowest level since October 2010.
* The 10-year JGB futures June contract added 0.14 point to 143.26, its highest level since Feb. 14, when futures spiked following the Bank of Japan's surprise announcement of further monetary easing.
* The superlong tenor was steady, with the 20-year JGB yield flat at 1.650 percent and the 30-year JGB yield flat at 1.825 percent.
* The five-year JGB yield dropped 1 basis point to 0.245 percent, also matching its lowest level since October 2010 hit on Monday.
- Tweet this
- Share this
- Digg this