JGBs steady to higher, ultra-long maturities outperform

Wed Jun 25, 2014 3:25am EDT

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TOKYO, June 25 (IFR) - Japanese government bond prices were steady to slightly higher, with ultra-long maturities outperforming, as concerns on the conflict in Iraq pushed down share prices.

The current 10-year JGB yield was flat at 0.575 percent , while the 20-year yield fell 1.5 basis points to 1.430 percent, its lowest in three weeks.

Earlier, a few regional banks bought the current five-year JGBs sporadically on expectations that the BOJ will hold five-year yields at current levels for the time being.

A few pension funds bought eight- to nine-year JGBs for month-end duration adjustments while a few domestic lifers purchased 20-year JGBs maturing in around 14 to 16 years, JGB traders said.

According to the data published by the BOJ Tuesday evening, the BOJ's holding of the off-the-run 333rd 10-year JGBs increased to around 62 percent of the total issue amount as of June 20.

It was the first time for the BOJ to hold more than 60 percent of one issue in maturities of 10 years or longer.

The price of 10-year JGB futures rose 0.09 point to 145.53 . (Reporting by Masatsugu Hisatsune; Editing by Anand Basu)

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