TOKYO, May 8 (IFR) - Japanese government bond prices ended
Thursday's morning session mostly lower, sending yields up
slightly as investors positioned for the day's 10-year sale.
Domestic real money accounts adopted a wait-and-see stance
ahead of the monthly 2.4 trillion yen ($23.60 billion) offering
of 10-year JGBs. As widely expected, the Ministry of Finance set
the coupon of the new 10-year JGBs at 0.6 percent for the
seventh straight month, re-opening the current issue number 333
for the second time.
The payment date is May 12, the regular settlement date,
meaning JGB investors have no need to adjust yields between the
current issue and the new one.
Dealers and megabanks are expected to buy the new 10-year
JGBs at the current levels in relatively large lots in order to
cover their short positions, and to sell some JGBs to the Bank
of Japan in its anticipated JGB-buying operations on Friday, JGB
Several regional banks may buy the new 10-year JGBs in the
post-auction secondary market to prepare for the large quarterly
redemption on June 20.
Ahead of the auction results, the yield on the current
10-year JGBs was up 0.5 basis point at 0.600
percent, while the 20-year yield also rose 0.5
basis point to 1.460 percent. The 30-year yield
was flat at 1.695 percent.
Ten-year lead June JGB futures moved in an
extremely narrow 145.13-145.18 range before finishing at midday
down 0.08 point at 145.13.
($1 = 101.7150 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Shri Navaratnam)