TOKYO, March 13 (IFR) - Japanese government bond prices
slipped on Thursday, while JGB futures briefly fell as much as
one point, on what appeared to be a single order, before paring
The Bank of Japan offered to buy a total of 570 billion yen
($5.55 billion) in JGBs in two operations. But the central bank
reduced the size of its purchase in the 10-year and longer zone
to 170 billion yen from 180 billion yen, after having also cut
the size in that zone on Feb 26.
On Wednesday, several corporate pension funds sold 2-year
and 30-year JGBs in relatively large lots, probably to use the
funds for bargain hunting in Tokyo stocks, JGB traders said.
This morning, other investors seemed to have followed suit.
Market participants were seen as reluctant to drive 5-year
JGB yields down ahead of Friday's monthly 2.7 trillion sale of
5-year JGBs. The Ministry of Finance will extend the maturity of
the issue by 3 months this time, for the first time in 3 months.
In early afternoon, the yield on the current 5-year JGBs
rose 1.5 basis points from the previous close to
0.200 percent, while the 10-year yield was up 2
basis points at 0.645 percent.
The 20-year yield added 1.5 basis points to
1.475 percent, while the yield on the 30-year JGB
rose 1 basis point to 1.700 percent.
Lead June JGB futures were down 0.17 point at
144.58 in afternoon trade, after finishing the morning at
144.55. At one point in the early session, the contract dropped
as low as 143.75, down from a session high of 144.86, in what
one market participant said was likely an erroneously placed