TOKYO Oct 30 Benchmark Japanese government
bonds rose on Tuesday after the previous session's fall as
investors awaited the outcome of a Bank of Japan meeting at
which the central bank is expected to take further easing steps.
* The 10-year yield fell 1 basis point to
0.760 p ercent, within half a basis point of this month's low of
0.755 percent. A break below that would bring it to its lowest
level since Aug. 7.
* The 10-year JGB futures gained 0.10 point to
144.32 after briefly rising as high as 144.38, their highest
level since Aug. 7.
* The BOJ is expected to ease monetary policy for the second
straight month, most likely by increasing its asset buying and
lending programme by at least 10 trillion yen ($126 billion).
* "If there is no action, it would take markets by surprise,
and the yen would likely rise and stocks would fall, and JGBs
would react to that," said Tomohiro Miyasaka, an analyst at
Credit Suisse in Tokyo.
* Data on Tuesday reinforced expectations that the central
bank will act to support the economy. Industrial production fell
last month at its fastest pace since last year's disaster, and
job availability dropped for the first time in more than three
* The yield curve steepened as superlong debt
underperformed, with the yield on 20-year debt
adding 1 basis point to 1.695 percent and yields on the 30-year
bonds rising 1.5 basis points to 1.960 percent.
* Japanese Economics Minister Seiji Maehara kept steady
pressure on the BOJ, saying on Tuesday that he wants it to
pursue strong monetary easing to achieve its goal of a 1 percent
rise in the consumer price index.
Maehara will attend Tuesday's meeting as a representative of
the government, without a vote on monetary policy.
* The BOJ does not schedule the announcements of its policy
decisions. JP Morgan analysts said in a note to clients that so
far this year the timing of the announcement after meetings at
which there was a change in policy came between 0330 GMT and
0507 GMT, with only one exception on April 10.
When the central bank holds policy steady, the announcement
usually comes before 0330 GMT.