TOKYO, Jan 17 (IFR) - Japanese government bond prices were
mixed on Friday, with domestic real money accounts remaining
largely sidelined amid a lack of purchases by the Bank of Japan
in the secondary market.
The BOJ holds off on JGB purchases under its massive
bond-buying programme when the Ministry of Finance conducts JGB
auctions on the same day.
The ministry is to sell 300 billion yen ($2.9 billion) in
off-the-run 20-, 30- and 40-year JGBs to improve liquidity at
the long end of the yield curve.
The 10-year yield was down 0.5 basis point at
0.665 percent, not far from a near one-month low of 0.650
percent set on Jan. 14. Ten-year JGB futures gained 9
ticks to 144.27.
"With the yen appreciation and U.S. bond market gains
following last week's U.S. employment report failing to take
hold as a trend, the decline in JGB yields also appears to be
running its course," Barclays analysts wrote in a note.
"For now, we believe the market is likely to view levels
near 0.65 percent as the lower bound for 10-year yields."
The 30-year yield added 0.5 basis point to
1.690 percent, while the 20-year yield was not
Earlier, Japan raised its assessment on the overall economy
for the first time in four months, reflecting solid private
consumption and improving capital expenditure, indicating that
the country's economic recovery is on a more solid footing.