TOKYO May 21 Japanese government bond prices
were narrowly mixed on Tuesday as traders braced for an auction
of 40-year bonds later in the day, while the market remained
fragile as Japan's aggressive stimulus has boosted share prices.
* The Ministry of Finance offered 400 billion yen ($3.9
billion) of 40-year JGBs, the longest maturity the ministry
currently offers. The auction result will be announced at 12:45
p.m. (0345 GMT).
* Market players do not expect strong demand give recent
weakness in the market, sparked by the Bank of Japan's
aggressive monetary easing.
* BOJ Governor Haruhiko Kuroda did little to soothe bond
investors on Monday, when he said it was natural for long-term
bond yields to rise as inflation expectations pick up.
* "I think the auction will likely be soft. The market is
still in a difficult position," said Katsutoshi Inadome, fixed
income strategist at Mitsubishi UFJ Morgan Stanley Securities.
* The yield on the current 10-year cash bonds rose 0.5 basis
point to 0.850 percent. It hit a one-year high of
0.920 percent last week.
* The 30-year bond yield was flat at 1.820 percent
, though it had risen to 1.830 percent at one
stage, its highest level in almost three months.
* The benchmark 10-year JGB futures rose 0.01 point