TOKYO, Jan 16 (IFR) - Japanese government bond prices ended
the morning session lower on Thursday, with the 10-year/20-year
yield curve steepening by 1 basis point from the previous
session after upbeat economic data.
Japan's core machinery orders jumped in November for the
second straight month of gains, a sign companies may ramp up
investment to meet strong domestic demand and boding well for
Prime Minister Shinzo Abe's efforts to revive the economy.
Bank of Japan Governor Haruhiko Kuroda maintained his upbeat
view on the economy, saying it is expected to continue a
moderate recovery despite the likely pain from a sales tax hike
JGB market sentiment was also subdued after U.S. stock
prices continued to rise overnight, shrugging off a continued
rise in U.S. Treasury yields, with the Standard & Poor's 500
index closing at a record high overnight.
In the morning session, the yield on the new 30-year JGBs
, a re-opening of issue #41, rose by 1.5 basis
points to 1.685 percent, compared with 1.672 percent for the
highest accepted yield in Wednesday's monthly 30-year JGB
The 20-year sector weakened more than the 30-year sector,
driving the 20-year yield up 2 basis points to
Domestic pension funds and life insurers took a wait-and-see
stance despite this morning's BOJ purchases of 200 billion yen
($1.91 billion) in JGBs maturing in more than 10 years.
In the mid- to long-term zone, 5-year notes
are yet to be priced actively among brokers ahead of next
Tuesday's monthly 5-year JGB auction. The yield on 10-year JGBs
was up 1 basis point at 0.670 percent in thin
Lead March JGB futures moved in a 144.17-144.23
range before finishing the morning session down 0.05 point at