JGBs slightly higher; Greek election awaited
TOKYO, June 15
TOKYO, June 15 (Reuters) - Japanese government bond prices edged up slightly on Friday, as some market participants bought ahead of redemptions next week, but wariness ahead of the weekend's election in Greece limited moves.
* Investors also awaited the outcome of the Bank of Japan's regular two-day meeting. The central bank was widely expected to stand pat on monetary policy as it, too, monitors the outcome of the Greek election and Europe's deepening debt crisis.
The BOJ is expected to keep its policy rate in a range of zero to 0.1 percent and hold off increasing the size of its main policy tool, a 40-trillion yen ($505 billion) asset-buying programme.
* The Greek elections on Sunday could determine whether the country remains in the euro zone.
Plans for coordinated central bank action to stabilise financial markets, if needed, by providing liquidity and prevent any credit squeeze after Sunday's election reassured some investors, and took away some of the appeal of fixed-income assets.
* But a quarterly JGB redemption on June 20 is underpinning demand, market participants said, with funds and insurers seeking to buy.
* "These yield levels aren't great but the might get even worse after the Greek election, so some insurers are throwing in the towel," said a fixed-income fund manager at a Japanese bank, referring to life insurers who had been putting off buying ahead of the redemptions, in the hope of buying at higher yields.
* The 10-year JGB yield slipped half a basis point to 0.855 percent, while the 10-year JGB futures contract for September ended morning trade down 0.01 point at 143.50.
* The 20-year yield fell half a basis point to 1.670 percent, while the 30-year yield also fell half a basis point to 1.880 percent, after rising to 1.895 percent on Thursday, its highest level since April 27.
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