TOKYO Dec 1 Japanese government bonds mostly
slipped on Thursday, taking their cue from stronger stocks after
OPEC agreed to cut crude output for the first time since 2008 to
support oil prices.
The oil output deal helped the Nikkei stock index
end at an 11-month high.
The outcome of a sale of 10-year JGBs showed weaker demand
than last month's sale, although the results were not as bad as
some investors feared, and the benchmark yield came off its
The 10-year yield rose half a basis point (bp) to 0.020
percent, down from a session high of 0.035
percent and below last week's nine-month high of 0.045 percent.
December 10-year JGB futures ended down 0.06 point
at 150.50, above their session low of 150.33.
The Ministry of Finance's sale of 2.4 trillion yen ($21.1
billion) of 10-year JGBs with a 0.10 percent coupon drew bids of
3.78 times the amount offered, down from the previous sale's
bid-to-cover ratio of 4.35 times.
Some 40.6682 percent of the bids were accepted at the lowest
price of 100.5900. The tail between the average and lowest
accepted prices widened to 8 from that of last month's offering
In the superlong zone, the 20-year yield added 3 bps to
0.475 percent, while the 30-year yield rose 2 bps
to 0.590 percent.
Bank of Japan board member Makoto Sakurai said in a speech
on Thursday that the central bank will continue to buy massive
amounts of government bonds even under its new policy framework
targeting interest rates.
"Our yield curve control is operating smoothly," he told
reporters later in the day, adding that bond yields were moving
roughly in line with the central bank's intentions.
The BOJ said on Wednesday that it plans to keep the amount
of its bond purchases in all maturities unchanged in its initial
market operations in December from November, buying a little
over 9.0 trillion yen of JGBs this month. The BOJ has kept that
pace since October.
($1 = 113.8800 yen)
(Reporting by Tokyo markets team; Editing by Jacqueline Wong)