TOKYO, Feb 5 (IFR) - Superlong Japanese government bond
prices firmed on Wednesday, flattening the yield curve further
as some domestic pension funds bought 30-year bonds.
A rise in longer-dated U.S. Treasury yields overnight had
only a limited negative impact on superlong JGBs, market
In the morning session, a few domestic pension funds
continued to buy the current 30-year JGBs. The 30-year yield
fell as low as 1.570 percent in afternoon
trading, its lowest level since early May. It was last down 2
basis points at 1.575 percent.
On Thursday, the Ministry of Finance will hold its monthly
auction for 500 billion yen ($4.93 billion)of 30-year notes,
reopening the current issue number 41 for the regular settlement
As expected, the Bank of Japan offered to buy 900 billion
yen in JGBs maturing in more than 1 year and within 10 years.
The yield on the benchmark 10-year JGBs was
flat at 0.600 percent, compared with an average accepted yield
of 0.596 percent in the previous session's 10-year sale.
Earlier, it fell to 0.595 percent, its lowest since November.
In the superlong zone, the yield on 20-year JGBs
was down 1.5 basis points at 1.410 percent after
earlier dropping as low as 1.405 percent, its lowest since
Lead March JGB futures inched up 0.01 point to
144.83 in afternoon trade, after moving in a narrow
144.72-144.81 range in the morning session.