TOKYO, Feb 7 (IFR) - Japanese government bond prices slipped
on Friday, taking their cue from stronger Tokyo equities as
investors positioned for an upbeat U.S. jobs report later in the
JGB prices ended the morning session lower, sending yields
up 2 to 3.5 basis points on the day in the 10-year and longer
zones, as the Nikkei stock average rose 1.6 percent by
The latest nonfarm payrolls report for January will provide
clues on the health of the U.S. labour market and the broader
economy. The data, due later on Friday, is expected to show that
employers added 185,000 jobs in January, according to the median
estimate of economists polled by Reuters.
U.S. Treasury prices fell for the third consecutive session
on Thursday, which also pressured JGB prices.
In midmorning trading, the yield on the new 30-year JGBs
(reopening issue No. 41) broke above the highest
accepted yield of 1.60 percent in Thursday's auction, briefly
rising as high as 1.615 percent. It was last at 1.610 percent,
up 2.5 basis points.
JGB traders said most domestic institutional investors
stayed on the sidelines in the morning, awaiting the results of
this session's JGB purchases by the Bank of Japan, which offered
to buy 200 billion yen ($1.96 billion) worth of JGBs in the
10-year and longer zones.
At midday, the yield on five-year JGBs was up
0.5 basis point at 0.20 percent, while the 10-year JGB yield
was up 2 basis points at 0.625 percent.
The yield on 20-year JGBs was up 3 basis
points at 1.450 percent.
Lead March JGB futures moved in a 144.60-144.72
range before finishing midday down 0.17 point at 144.63.