TOKYO, June 17 Japanese government bonds began
the week on shakier footing on Monday, with the benchmark yield
edging higher as stocks rose and investors positioned for this
week's 20-year sale.
* The 10-year yield added 3 basis points to
0.845 percent after rising as high as 0.855 percent. It remained
in its recent trading range of 0.80 to 0.90 percent, well shy of
a 13-month high of one percent hit on May 23.
* The Bank of Japan's operations under its asset-buying
stimulus scheme underpinned prices. On Monday, the central bank
offered to buy 100 billion yen ($1.06 billion) of JGBs with one
to three years left to maturity, and another 400 billion yen of
JGBs with a three to five year maturity profile.
* The 10-year futures contract ended morning trade
down 0.17 point at 142.63, turning negative after the Nikkei
stock average reversed early losses on buying in
* Prices on superlong maturities also fell ahead of
Tuesday's 20-year auction. The 20-year yield
added 1.5 basis points to 1.685 percent and the 30-year yield
added 1 basis point to 1.805 percent.
* Sentiment in the JGB market improved sharply on
expectations that the U.S. Federal Reserve will keep short-term
interest rates low, the latest weekly Thomson Reuters poll
showed on Monday.
Fed policymakers will hold a regular meeting on Tuesday and
Wednesday this week. JGB yields often track Treasury yields, so
Japanese investors will watch for any signs the U.S. central
bank is set to taper its asset-buying stimulus.