TOKYO, Sept 25 Japanese government bond prices
were supported on Tuesday following soft German business
sentiment data, with longest maturities outperforming on buying
by Japanese investors ahead of half-year book-closing at the end
of the month.
* The 10-year JGB futures were up 0.01 point at
143.95. That level reflected a 50 percent retracement of its
July-August decline, which was driven primarily by unwinding of
safe-haven buying due to concerns about the European debt
* The 144 mark in the futures is seen as a major resistance
for now. Above that, another resistance is seen at 144.12, the
61.8 percent retracement of the same decline.
* The 10-year cash bond yield stood flat at 0.790 percent
, matching a three-week low hit on Monday.
* Longer maturities, such as 20- and 30-year bonds, fared
better as they attracted bids from Japanese investors such as
life insurers ahead of the last day of their financial half year
on Sept. 30.
* "For those investors who haven't bought much this
half-year, the longer maturities look the most attractive given
the hefty spreads" over shorter maturities, said a fund manager
at a Japanese asset management firm.
* The yield spread between 10- and 30-year bonds widened to
a four-year high of 114 basis points last Thursday and stood at
a still hefty 111 basis points. That compared with 94 basis
points at the start of this financial year in April.
* The 30-year bond yield fell 1.0 basis point to 1.900
percent while the 20-year yield fell 0.5 basis
point to 1.650 percent.