JGBs slip on speculation Noda may call election soon
TOKYO Nov 13 (Reuters) - Japanese government bond prices edged lower on Tuesday, hurt by speculation that Prime Minister Yoshihiko Noda may soon dissolve the parliament and hold a snap election by the end of year.
* Opinion polls have shown the conservative opposition Liberal Democratic Party, which some market players worry is less committed to fiscal belt-tightening such as planned tax hikes, is expected to beat Noda's Democratic Party of Japan.
* Market players also expects LDP leader Shinzo Abe to put bigger pressure on the Bank of Japan to enhance monetary easing. Abe has said he thinks inflation target of 3 percent would be desirable.
* "The market is clearly reacting to the news that dissolution of the parliament is likely. At the moment, Abe looks set to become next prime minister and he is likely to put more pressure on the BOJ," said a trader at a Japanese bank.
* The 10-year JGB futures fell more than 10 pips at one point to as low as 144.47, before paring losses to stand at 144.56, still down 0.02 point.
* The 10-year yield stood at 0.730 percent, up 0.5 basis point from Monday's settlement yield of 0.725 percent, though there was no trade at that level on Monday.