TOKYO, June 13 Japanese government bonds soared
on Thursday, with the benchmark 10-year yield dropping below the
0.8 percent level for the first time in nearly a month as stocks
plunged in line with a resurgent yen.
* The 10-year JGB yield skidded 8 basis
points to 0.795 percent, its lowest level since May 17, and
moving away from a two-week high of 0.9 percent touched on
* Ten-year JGB futures ended morning trade up 0.77
point at 143.10.
* The yield on the 20-year bond fell 5 basis
points to 1.645 percent, also moving away from a two-week high
of 1.705 percent hit on Wednesday.
* The Nikkei share average plunged more than 5
percent on Thursday, after the dollar fell to a 10-week low
against the yen as investors cut bullish positions on the U.S.
currency amid uncertainty over whether the Federal Reserve will
trim its stimulus programme.
* "Stocks reacted to the yen's strength, and that is why
investors are buying bonds," said a fixed-income fund manager at
a Japanese trust bank in Tokyo.
"Investors continue to adjust positions, with the BOJ's
policy in focus," he added.
* Stocks came under more pressure earlier this week, when
the BOJ kept monetary policy steady on Tuesday and held off on
any new measures to calm bond markets.
* BOJ board member Sayuri Shirai said on Thursday that the
central bank expects Japan's long-term rates to eventually
stabilise at levels consistent with its 2 percent inflation
* The BOJ offered to buy outright in its regular market
operations 450 billion yen ($4.70 billion) of JGBs with residual
maturities of five to 10 years, and another 200 billion yen
maturing in more than 10 years.