TOKYO Oct 19 Japanese government bonds were
mostly little changed in thin trade on Wednesday, with the
benchmark bond untraded, though prices in the superlong zone
edged down slightly.
The 10-year JGB was not priced on interdealer broker JBT as
of late afternoon. Its yield ended trade on Tuesday at minus
0.055 percent .
December 10-year futures ended up 0.04 point at
The 20-year JGB yield added half a basis point (bp) to 0.395
percent, while the 30-year yield rose 1 bp to
Bank of Japan operations underpinned the market.
The central bank offered to buy 400 billion yen ($3.86
billion) of 1- to 3-year JGBs, 420 billion yen of 3- to 5-year
JGBs, 190 billion yen of 10-r to 25-year JGBs and 110 billion
yen of 25- to 40-year JGBs under its asset purchase programme.
Rising costs of currency hedging also underpinned JGB
Hedging costs have soared on the prospect of higher interest
rates and tougher U.S. money market regulations, prompting some
investors to shun overseas investments in favour of the domestic
Investors awaited a 500 billion yen liquidity-enhancing
auction on Thursday, under which the finance ministry regularly
supplies the market with off-the-run debt.
($1 = 103.5200 yen)
(Reporting by Tokyo marekts team; Editing by Kim Coghill)