TOKYO, May 28 (IFR) - Japanese government bond prices were
steady on Thursday, underpinned by the Bank of Japan's purchases
under its massive asset buying programme.
Besides the central bank's buying, cash activity was limited
to transactions among dealers, traders said.
The BOJ offered to buy 170 billion yen ($1.67 billion) in
JGBs maturing beyond 10 years in addition to 250 billion yen in
the 3-year to 5-year zone.
The BOJ did not reduce its purchase amount in the superlong
zone as some investors had expected. Some believe the central
bank will buy less in that zone as it seeks to shorten the
average duration of its JGB holdings from around 8 years to its
target of 6 to 7 years.
The yields on the current 10-year and 20-year
JGBs were unchanged from Wednesday's levels at
0.590 percent and 1.445 percent, respectively, while the 30-year
yield dipped half a basis point to 1.685 percent.
Ten-year lead June JGB futures moved in a
145.24-145.30 range in the morning session before finishing at
midday up 0.06 point at 145.29.
($1 = 102.0700 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Shri Navaratnam)