TOKYO, Jan 6 (IFR) - Japanese government bond prices ended
the morning session modestly higher on Monday, bolstered by
rising risk aversion as stocks slumped.
In early morning trade, a few regional banks bought 5-year
and 10-year JGBs to average down their costs as Tokyo stocks
fell, though gains were limited by caution ahead of Tuesday's
monthly 2.4 trillion yen ($22.97 billion) sale of 10-year notes.
As expected, the Bank of Japan offered to buy 200 billion
yen in the 10-year and longer zone under its JGB purchase
programme, in addition to 250 billion yen in the 3-year to
5-year zone, and 250 billion yen in the 1-year to 3-year zone.
In late morning trade, the current 10-yr JGBs (issue #332)
extended their earlier gains slightly, sending their yield
down from 0.735 percent to 0.730 percent, down 1
basis point from the previous close.
Many domestic real money accounts remained sidelined after a
long Japanese New Year holiday. Yields on the current 5-year
notes, as well as those on 20-year and 30-year bonds, moved
little, and were all down half a basis point at 0.23 percent
, 1.575 percent and 1.725 percent
Lead March JGB futures moved in a narrow
143.32-143.50 range before finishing midday up 0.17 point at