TOKYO May 8 Japanese government bonds dipped
slightly on Wednesday as China's strong trade data lifted
investor risk sentiment and on disappointment over a lack of
bond buying by the Bank of Japan.
* The price of 10-year JGB futures dipped 0.11 point to
144.62, slipping further from a three-week high of
145.15 hit on Thursday.
* The 10-year Japanese government bond yield rose 1.0 basis
point to 0.600 percent, though it is still
comfortably within its trading range since late April between
0.55 and 0.65 percent.
* Chinese exports and imports rose more than expected in
April, helping to boost regional stocks, including Japanese
shares. The Nikkei share average rose more than one
percent and hit a near-five-year high.
* Some traders were also disappointed the Bank of Japan did
not conduct its bond buying on Wednesday. The central bank is by
far the biggest single buyer of JGBs as it has committed itself
to a two-year stimulus plan to buy 7.5 trillion yen bonds per
* Still, the BOJ's massive bond buying plan is limiting
losses in the market and some analysts say JGBs should
eventually strengthen as the BOJ will gobble up more bonds from
* "As the BOJ is going to buy such a huge amount of bonds,
and with market volatility falling, I expect JGB yields to
gradually fall, to around 0.4 percent," said Yuya Yamashita,
rates strategist at JPMorgan Chase.