JGBs slip slightly as FOMC awaited for U.S. easing clues
TOKYO, Jan 30 (Reuters) - Japanese government bonds inched lower on Wednesday, in line with U.S. Treasuries ahead of the outcome of the U.S. Federal Reserve's two-day meeting later in the session. * The 10-year JGB yield added half a basis point to 0.770 percent, moving 5 basis points above a six-week low of 0.720 percent hit last week. * Investors will be parsing the Fed's policy statement for any signals on when it might curb its bond buying. Any further suggestion that the U.S. central bank could pare back or end its latest round of quantitative easing before the close of 2013 could lead to a sell-off in Treasuries, which would in turn likely push JGB yields higher. * "There probably won't be big moves in JGBs today head of the Fed," said a fixed-income fund manager at a European asset management firm. "It's possible to put on small positions in the meantime, but when moves are very small, it's sometimes not even worth the trading costs," he added. * The 10-year JGB futures contract ended morning trade down 0.04 point at 144.03. * Superlong maturities were slightly weaker, as investors digested the government's issuance plan for fiscal 2013 JGB issuance. The plan, released late on Tuesday, was mostly in line with market expectations. * Japan will issue a record 156.6 trillion yen ($1.73 trillion) of JGBs through regular auctions in the fiscal year from next April, including 42.8 trillion yen of bonds to finance spending. The finance ministry will also auction 600 billion yen of consumer price-linked bonds next fiscal year due to interest from overseas investors, but it has yet to decide the auction schedule. * Because of the large supplementary budget for the fiscal year through March, "calendar-basis JGB issuance will increase to a record high, and concerns over fiscal reform remain," Bank of America Merrill Lynch said in a note to clients. * The 20-year yield added 1 basis point to 1.785 percent, and the 30-year bond yield also rose 1 basis point to 2.005 percent.
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