JGBs tread water, capped by Nikkei's rebound
TOKYO, March 25 (IFR) - Japanese government bond prices were little changed across the board on Tuesday, handing back modest gains made earlier as Tokyo stocks clawed out of the red.
JGB 10-year futures dipped 0.02 point to 144.93. The contracts earlier hit a high of 144.90 on overnight gains by U.S. Treasuries and a weaker start to the Nikkei stock average .
The benchmark 10-year cash bond yield rose half a basis point to 0.610 percent.
JGB market participants expect the bond market to remain trapped in a narrow range this week as many investors have already closed their books ahead of the month's end, when Japan's fiscal year ends.
Another factor that contributed to the wait-and-see mood was the 300 billion yen ($2.93 billion) liquidity-enhancing auction conducted by the Ministry of Finance.
The MOF regularly issues extra amounts of outstanding JGBs deemed to be drawing relatively high investor demand in a bid to improve market liquidity.
($1 = 102.2350 Japanese Yen) (Reporting by Masatsugu Hisatsune; Editing by Richard Borsuk)