JGB prices mixed in last trading day of 2013

Sun Dec 29, 2013 9:40pm EST

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TOKYO, Dec 30 (IFR) - Japanese government bond prices were mixed on Monday morning, the last trading day of the year, with activity limited to transactions among dealers.

The Bank of Japan, as widely expected, offered to buy 500 billion yen ($4.8 billion) worth of JGBs in the secondary market with residual maturities of between one to five years, as part of its campaign to revive the world's third-largest economy.

The 10-year yield dipped 0.5 basis point to 0.705 percent, off a three-month high of 0.710 percent set late last week.

Ten-year JGB futures were down 2 ticks to 143.64, holding below their five-day moving average of 143.76.

The 10-year JGB yield is down 9 basis points so far this year, in which the BOJ stunned the financial markets in April by promising to inject $1.4 trillion into the economy in less than two years to pull it out of prolonged deflation.

It would also mark a fourth straight year of decline for the benchmark yield. But the fall in that yield underperformed those for longer-dated bonds.

The 30-year yield is down 26.5 basis points this year, while the 20-year yield has fallen 19 basis points.

On Monday, the 30-year yield was unchanged at 1.710 percent, while the 20-year yield inched up 0.5 basis point to 1.565 percent.

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