JGBs edge up in quiet trade as stocks slump
TOKYO, Jan 6 (IFR) - Japanese government bond prices ended the morning session modestly higher on Monday, bolstered by rising risk aversion as stocks slumped.
In early morning trade, a few regional banks bought 5-year and 10-year JGBs to average down their costs as Tokyo stocks fell, though gains were limited by caution ahead of Tuesday's monthly 2.4 trillion yen ($22.97 billion) sale of 10-year notes.
As expected, the Bank of Japan offered to buy 200 billion yen in the 10-year and longer zone under its JGB purchase programme, in addition to 250 billion yen in the 3-year to 5-year zone, and 250 billion yen in the 1-year to 3-year zone.
In late morning trade, the current 10-yr JGBs (issue #332) extended their earlier gains slightly, sending their yield down from 0.735 percent to 0.730 percent, down 1 basis point from the previous close.
Many domestic real money accounts remained sidelined after a long Japanese New Year holiday. Yields on the current 5-year notes, as well as those on 20-year and 30-year bonds, moved little, and were all down half a basis point at 0.23 percent , 1.575 percent and 1.725 percent , respectively.
Lead March JGB futures moved in a narrow 143.32-143.50 range before finishing midday up 0.17 point at 143.49.
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video