JGB futures little changed, 30-year auction eyed
TOKYO, Feb 9 (Reuters) - Japanese government bond futures were little changed on Tuesday as investors retreated to the sidelines, waiting to see if Tokyo's Nikkei stock average will remain on a downtrend after hitting two-month lows.
* Stock market weakness usually supports JGBs as investors are prompted to seek the relative safety of government debt. But that would not necessarily be the case at the moment, as a further fall in the Nikkei could force investors to take profits on bond gains ahead of Japan's financial year-end in March.
* March JGB futures edged up 0.03 point to 139.13 2JGBv1, while the benchmark 10-year yield was unchanged on the day at 1.355 percent JP10YTN=JBTC.
* The Ministry of Finance's 30-year debt auction on Tuesday is in focus. The ministry is selling 600 billion yen ($6.7 billion) of superlong bonds in a reopening of its current No 31 issue.
* The 30-year debt sale is expected to draw decent demand as the 30-year yield has stayed near its five-month highs. It was flat on the day at 2.315 percent JP30YTN=JBTC.
* The Nikkei average hit its lowest in two months on Tuesday, with exporters hurt after the Dow closed below 10,000 for the first time since November. [.T] [.N]
(Reporting by Rika Otsuka; Editing by Joseph Radford)
