JGBs slip ahead of Wednesday's 10-yr auction

Mon Apr 29, 2013 10:43pm EDT

Related Topics

TOKYO, April 30 (Reuters) - Japanese government bond prices
mostly slipped on Tuesday, as investors made room in their
portfolios to buy at the next day's 10-year sale.
  
   * The Ministry of Finance will offer 2.4 trillion yen ($24.45
billion) of 10-year notes.
        
    * "The sale is expected to be uneventful. I don't hear
anyone expressing any worry about it," said a fixed income fund
manager at a Japanese asset management firm in Tokyo.
    "This trading week is short because of Golden Week, so
supply and demand factors will be driving the market," he added.
    
    * Tokyo markets were closed on April 29, and will also be
shut for holidays on May 3 and May 6. The string of holidays is
known as Golden Week.   
    
    * The Bank of Japan on Tuesday offered to buy JGBs outright
in its regular asset-purchasing operations.
    The central bank said it will buy up to 200 billion yen of
notes with residual maturities of more than 1 year and up to 3
years, and an additional 400 billion yen of notes with residual
maturities of more than 3 year and up to 5 years. 
    It also offered to buy 140 billion yen in floating-rate
JGBs.

    * The 10-year yield added 1 basis point to
0.600 percent, up from 0.580 percent earlier in the session but
within last week's trading range of 0.575 to 0.610 percent. 
    
    * Ten-year futures finished morning trade down 0.13
point at 144.52, after rising as high as 144.79.
            
    * The 20-year JGB yield was flat at 1.475
percent and the 30-year bond was so far untraded, its yield
 closing last Friday at 1.600 percent.
    
    * Market participants largely shrugged off government data
released early on Tuesday that showed Japanese household
spending rose a greater-than-forecast 5.2 percent in March from
a year earlier in price-adjusted real terms.
FILED UNDER: