TOKYO, May 22 (IFR) - Japanese government bond prices ended
the morning session modestly lower on Thursday, as rallying
equities undermined the appeal of safe-haven fixed income
The Nikkei share average rose sharply as a survey
showing an encouraging improvement in Chinese manufacturing
added to an already upbeat mood after the U.S. Federal Reserve
reaffirmed its commitment to support the economy. The Nikkei was
up 1.6 percent at the end of the morning session.
The cash JGB market was very quiet as both investors and
dealers remained reluctant to take large positions ahead of the
results of this session's monthly 400 billion yen ($3.94
billion) liquidity enhancement auction for off-the-run 10-year
and 20-year JGBs at 0345 GMT.
As widely expected, the Bank of Japan did not offer to buy
JGBs in its asset purchase programme, as it typically refrains
on days when the Ministry of Finance conducts JGB auctions.
At midday, yields on the current 10-year,
20-year, and 30-year JGBs were all
up 0.5 basis point from Wednesday at 0.595 percent, 1.45
percent, and 1.69 percent, respectively.
Ten-year lead June JGB futures moved in a narrow
145.14-145.21 range before finishing the morning session down
0.04 point at 145.18.
($1 = 101.4950 Japanese yen)
(Reporting by Masatsugu Hisatsune; Editing by Jacqueline Wong)