TOKYO, April 11 Japanese government bond prices
dropped on Thursday as the Ministry of Finance offered 30-year
bonds in the first auction of any maturity since the bank of
Japan unveiled its radical monetary expansion scheme.
* JGBs have been highly volatile since the BOJ said a week
ago that it would embark on the world's most intense monetary
stimulus, which will pump about $1.4 trillion into the economy
in less than two years.
* "My feeling is that there are plenty of people who want to
buy 30-year bonds, but they will probably hold off and wait for
the market to settle down, and watch the impact of the BOJ's
move," said a fixed-income fund manager at a Japanese trust
* The finance ministry offered 600 billion yen ($6.1
billion) of 30-year bonds, reopening issue number 38 with a
coupon of 1.8 percent.
* Ten-year JGB futures ended morning trade sharply
lower on hedge selling ahead of the sale, down 0.47 point to
143.69, after dropping as low as 143.40.
Futures also dropped sharply in evening trade on Wednesday,
prompting the Tokyo Stock Exchange to briefly halt trading.
* Yields on benchmark 10-year bonds added 4
basis points to 0.620 percent after earlier matching the
previous session's high of 0.630 percent, their highest level in
about a month. The benchmark yield plunged to a record low of
0.315 percent on Friday.
* The 30-year yield rose 3 basis points to
1.480 percent, and the 20-year yield gained 3.5
basis points to 1.395 percent.
* Short- and medium-term maturities also dropped, with the
five-year yield hitting a fresh one-year high, adding half a
basis point to 0.280 percent after rising as high
as 0.320 percent.
The two-year yield rose 1.5 basis points to
0.135 percent after rising as high as 0.140 percent, its highest
since December 2011.