TOKYO, Feb 3 (IFR) - JGB prices rose on Monday, with the
yield curve flattening on buying by pension funds and the Bank
of Japan on the back of continued concerns over emerging
The current 20-year yield dropped 2.0 basis points to 1.440
percent, matching a 5 1/2-month low touched in
On top of buying by pension funds, the BOJ bought super-long
maturities as part of its asset purchase programme, surprising
traders who did not expect the central bank to buy those
maturities on Monday.
The benchmark 10-year yield fell 1.0 basis point to 0.610
percent, though buying in this tenor was tempered
by caution ahead of a 10-year JGB auction on Tuesday.
The market took its cue from fall in Japanese shares, and a
rise in U.S. Treasuries on Friday, driven by worries that
emerging markets will remain under pressure due to continued cut
backs in U.S. monetary stimulus and a slowdown in China.