TOKYO, Feb 18 (IFR) - Japanese government bond prices edged
down on Tuesday as Tokyo stocks bounced, with activity subdued
as the market took a wait-and-see stance ahead of the Bank of
Japan's monetary policy decision later in the day.
The yield on benchmark 10-year notes rose
half a basis point to 0.605 percent, but was still within
distance of its lowest levels since mid-November.
Lead March JGB futures finished midday down 0.02
point at 144.88.
The BOJ is expected to keep monetary policy steady on
Tuesday and maintain its upbeat view on the economy.
However, data on Monday showed the world's third-largest
economy grew much slower than expected in the fourth quarter,
underscoring the challenge of ending nearly two decades of
In the wake of the soft data, the market will focus on
whether BOJ Governor Haruhiko Kuroda will stick to his view of
last month that no further easing was needed now with prices
rising steadily and overseas economies recovering.
Traders said the super long zone sagged as participants
tried to make room to accommodate the new 20-year debt that the
Ministry of Finance will offer in an auction on Wednesday.
The 20-year yield rose 0.5 basis point to