(Corrects the size of BOJ operations in third paragraph to 110
bln yen from 100 bln yen)
TOKYO, Jan 10 (IFR) - Japanese government bond prices rose
modestly on Friday, with the superlong sectors outperforming,
leading to a flattening of the yield curve.
Many domestic real money accounts took a wait-and-see
approach in the morning session but they were expected to move,
depending on the results of Friday's Bank of Japan bond-buying
operations in the secondary market.
The BOJ offered to buy 200 billion yen ($1.9 billion) worth
of JGBs maturing in more than 10 years and 110 billion yen
maturing in one year, as part of its effort to revive the
world's third-largest economy.
Traders said the Japanese central bank seemed to be willing
to protect the superlong sectors from position squaring by
short-term players ahead of a long weekend in Japan and the U.S.
nonfarm payroll report due out later in the day.
The 30-year yield was down 1 basis point at
1.685 percent, hitting its lowest level since Dec. 25, while the
20-year yield dipped 0.5 basis point to 1.525
percent, the lowest since Dec. 24.
The 10-year yield was unchanged at 0.695
percent, while the 10-year JGB futures rose 7 ticks to
The U.S. Labor Department is expected to report on Friday
that nonfarm payrolls increased by 196,000 last month after
gaining 203,000 in November, according to a Reuters poll of
($1 = 104.7850 Japanese yen)
(Reporting by Masatsugu Hisatsune; Editing by Dominic Lau & Kim