TOKYO, June 19 Japanese government bonds were
little changed on Wednesday in thin trading as investors look to
how the U.S. Federal Reserve plans to slow down its bond buying.
* Investors think Fed Chairman Ben Bernanke might signal the
Fed will start trimming its bond buying in September while
stressing that tapering of stimulus will be gradual and a rate
hike is still not on the horizon.
* The 10-year JGB futures price dropped 0.06 point
to 142.89. Trade volume was low with only 9,998 lots changing
hands by midday, less than 30 percent of its average daily
* The yield on the 10-year cash bonds rose 0.5 basis point
to 0.825 percent. The benchmark yield has been
stuck in the 0.8-0.9 percent range for nearly three weeks,
keeping some distance from a 13-month high of 1.0 percent hit
* "On the whole the market has been calming down. That
suggests that many people are now prepared for a rise in bond
yields," said Tadashi Matsukawa, head of fixed income in
investment at PineBridge Investments in Tokyo.
* "Of course, a lot depends now on what Bernanke will say.
But if he doesn't radically change the market's perception, the
JGBs are likely to gain," Matsukawa added.