JGBs edge higher as stocks sag, super longs buck trend

Sun Jun 15, 2014 11:10pm EDT

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TOKYO, June 16 (IFR) - Japanese government bond prices edged higher on Monday as stocks sagged on Iraq concerns, although super long tenors bucked the trend.

As expected, the Bank of Japan bought a total of 900 billion yen of one- to 10-year JGBs in its regular bond purchasing programme which also helped underpin the market.

The benchmark 10-year JGB yield fell 0.5 basis point to 0.595 percent.

The September 10-year JGB futures gained 0.06 point to 145.26.

Thirty- and 40-year JGB yields edged higher on residual flows from Friday, when dealers unwound positions in these maturities.

Tokyo's Nikkei stock average lost 0.6 percent.

With last Friday's Bank of Japan monetary policy meeting out of the way, focus has turned to the potential impact on U.S. Treasuries from the outcome of the two-day U.S. Federal Reserve meeting that ends on Wednesday.

Of interest to the debt market is whether the Fed will provide a steer on the timing of interest rate hikes. (Reporting by Masatsugu Hisatsune; Editing by Shri Navaratnam)

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