Benchmark JGBs steady as BOJ announces buying operation

Tue Apr 23, 2013 10:31pm EDT

Related Topics

TOKYO, April 24 (Reuters) - Benchmark 10-year Japanese
government bonds were steady on Wednesday, as the Bank of Japan
announced the latest round of purchases under its new stimulus
scheme.    
    
    * The BOJ offered to buy 500 billion yen ($5.03 billion) in
JGBs outright on Friday, with residual maturities of more than 5
years and up to 10 years, and another 500 billion yen with
residual maturities of more than 1 year and up to 5 years. 

     * "Trading activity has been thin this week, with
expectations of BOJ operations supporting the market," said a
fixed income fund manager at a European asset management firm in
Tokyo.
    "The JGB market is making relatively small moves, on
supply/demand factors as investors adjust their portfolios, and
these conditions could continue through the Golden Week
holidays," he said.
    
    * Tokyo markets will be closed for holidays on April 29, and
then on May 3 and May 6.
    
    * The yield on benchmark 10-year bonds was
steady at 0.585 percent, while the 10-year futures contract
 ended morning trade up 0.04 point at 144.71, after
moving in a narrow range between 144.58 and 144.74.    
        
    * The superlong sector underperformed, as the BOJ refrained
from any buying in that tenor this time. The 20-year yield
 added 2.5 basis points to 1.470 percent, while
the 30-year yield rose 2 basis points to 1.595
percent.   
    
    *  The BOJ will update its forecasts after its policy
meeting on Friday. While no major policy steps are expected,
investors will be watching for any operational tweaks to the
central bank's asset-buying programme, and also whether BOJ
Governor Haruhiko Kuroda's two-year time frame to hit a 2
percent inflation target will become the bank's official
forecast.
FILED UNDER: