JGBs mostly higher in first trading day of the quarter

Tue Jul 1, 2014 4:28am EDT

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TOKYO, July 1 (IFR) - Japanese government bond prices were mostly modestly higher on Tuesday, the first trading day of the quarter.

One large public pension fund bought JGBs across the curve for its turn-of-the-month duration adjustments, while one Japanese megabank sold 20-year JGBs in relatively large lots for the first time in few months, traders said.

After lunch, a few life insurers sold 5-year JGBs to buy 20-year JGBs on dips, they added.

The results of Tuesday's purchases by the Bank of Japan under its massive asset-buying scheme were largely in line with market expectations, and had limited impact on the broader market. The central bank bought 400 billion yen ($3.94 billion) worth of JGBs in the 5-year to 10-year zone, 200 billion yen in the 3-year to 5-year zone, and 300 billion in the 1-year to 3-year zone.

The yield on the benchmark 10-year JGBs slipped one basis point to 0.550 percent, ahead of Thursday's monthly 2.4 trillion yen 10-year JGB auction.

In the superlong zone, the 20-year yield was flat at 1.420 percent, while the 30-year yield was down 1.5 basis points at 1.670 percent.

Lead September JGB futures were up 0.05 point at 145.70. ($1 = 101.4900 Japanese yen) (Reporting by Masatsugu Hisatsune; Editing by Jacqueline Wong)

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