JGBs mostly lower despite BOJ buys; superlongs recover

TOKYO, April 12 Thu Apr 11, 2013 11:00pm EDT

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TOKYO, April 12 (Reuters) - Japanese government bond prices were mostly lower on Friday, though the superlong sector bounced back after the previous session's steep losses following a downbeat 30-year sale.

* The Bank of Japan said on Thursday that it will buy on Friday 300 billion yen ($3.0 billion) in government debt with maturities of 10 years or more, 1 trillion yen from five to 10 years, 1.1 trillion yen the 1-5 year zone and 110 billion yen in debt maturing in one year or less.

* "The BOJ's announcement supported prices yesterday, but actual buying is already factored in," said a fixed-income fund manager at a European asset management firm in Tokyo.

"It is really hard to judge where values should be, since the BOJ's programme is in its early days. Some people have to buy now even in volatile conditions, but investors with the leeway to wait are choosing to sit on the sidelines," he said.

* Ten-year JGB futures ended morning trade down 0.22 point at 144.51, below an intraday high of 144.87.

Yields on benchmark 10-year bonds rose 1.5 basis points to 0.560 percent, below this week's one-month high of 0.630 percent but above a session low of 0.535 percent.

The 10-year yield remained far above its record low of 0.315 percent hit a week ago, a day after the BOJ unveiled its radical monetary overhaul that will pump about $1.4 trillion into the economy in less than two years.

* The 30-year yield slipped 1 basis point to 1.495 percent, and the 20-year yield fell 1.5 basis points to 1.395 percent.

* Short- and medium-term maturities were slightly weaker despite the BOJ's assurance on Thursday that it has no plans to lower its purchases of short-term debt under its new scheme, after it met with market participants to hear their views on its operations.

The five-year yield added half a basis point to 0.210 percent, after hitting a fresh one-year high in the previous session of 0.320 percent.

The two-year yield also added half a basis point to 0.120 percent.

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