JGB sentiment gauge at 1 1/2-month low - Thomson Reuters survey
TOKYO, Sept 18
TOKYO, Sept 18 (Reuters) - A gauge of sentiment in the Japanese government bond market slipped to its lowest level in 1 1/2 months after the U.S. Federal Reserve's aggressive stimulus steps and European Central Bank steps to alleviate the debt crisis raised investor risk appetite, a weekly Thomson Reuters survey showed on Tuesday.
The weekly poll's JGB bull-bear diffusion index, calculated by subtracting the number of bearish market players from those that are bullish, came in at minus 31, down from minus 14 in last week's survey and matching the reading in the July 30 survey.
Last week, the Fed said it would buy $40 billion of mortgage-backed debt per month until the employment outlook improves. It also extended the time frame for maintaining its current low interest rates until at least mid-2015, from its previous plan through late 2014.
The ECB unveiled a potentially unlimited bond-buying programme earlier this month, aimed at easing the strain on debt-burdened southern euro zone countries.
Some investors expect the Bank of Japan to hold off on easing monetary policy at its two-day policy meeting ending Wednesday, but some others say the central bank might decide to act to stem a rise in the yen.
The JGB survey found that most respondents did not expect big JGB market moves, with 43.6 percent expecting yields to move sideways, up from 40.0 percent in the previous survey.
Some 46.3 percent of respondents expect yields to rise, up from 37.1 percent in last week's poll, while 12.8 percent of total respondents expect JGB yields to fall this week, down from 22.9 percent in the previous survey.
The median forecast for the 10-year JGB yield for the end of this week was 0.800 percent, half a basis point above Friday's closing level of 0.795 percent and below an expectation of 0.820 percent in last week's survey.
The online survey of 93 JGB market participants from major institutions received 39 responses, for a response rate of 41.9 percent. These included 18 responses from "real money" investors from institutions such as banks, pension and investment funds and insurance companies.
The benchmark 10-year cash note rose 2.5 basis points on Tuesday to 0.820 percent, while the 10-year JGB futures contract fell 0.26 point to 143.61.
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