TOKYO Nov 14 Benchmark Japanese government bond
prices edged lower on Wednesday, taking their cue from slightly
stronger stocks, but most maturities were steady as investors'
attention turned to the U.S. fiscal crisis.
* Debate on the U.S. "fiscal cliff" resumed on Tuesday with
the White House saying it was ready to negotiate with
Republicans on taxes and spending. But a spokesman for President
Barack Obama said he will keep insisting that tax rates on the
wealthy must rise in 2013.
* "The market is watching developments in the U.S. which
could keep U.S. Treasuries well-bid and support JGBs," said a
fixed-income fund manager at a Japanese trust bank.
* The 10-year JGB futures contract ended morning
trade down 0.03 point at 144.51, after moving in a tight
* The 10-year yield inched up half a basis
point to 0.735 percent.
* Yields on other maturities were flat. The yields on
30-year bonds were at 1.900 percent, while those
on 20-year debt stood 1.645 percent. The 5-year
yield stood at 0.190 percent.
* The superlong tenor could come under mild selling pressure
ahead of Thursday's 20-year auction, market participants said.
* The Nikkei was slightly higher after falling for a
seventh straight session on Tuesday.
* Underpinning bond market sentiment, Japan's ruling and
opposition parties agreed on Tuesday to quickly pass a deficit
funding bill in parliament, in a move that will keep the country
from falling off its version of a 'fiscal cliff.'