TOKYO Nov 20 Benchmark Japanese government
bonds slipped slightly on Tuesday as investors awaited the
outcome of the Bank of Japan's regular policy meeting, while the
recently battered superlong tenor edged up on bargain hunting.
* The BOJ may hold off on any further stimulus steps until
early next year as it assesses the policies of Japan's next
government following an election on Dec. 16.
* Shinzo Abe, leader of the main opposition Liberal
Democratic Party and likely Japan's next prime minister, has
even suggested revising the BOJ law, and calling on the central
bank to directly underwrite bonds issued to fund public works
* The LDP is likely to include in its campaign platform a
pledge to consider revising a law guaranteeing central bank
independence, the Nikkei newspaper reported on Tuesday.
* "Abe's remarks in recent days caused the yield curve to
steepen as the superlong maturities dropped on concern about
what is to come," said a fixed-income fund manager at a European
asset management firm in Tokyo.
"We expect the curve to stay steep, but perhaps not much
beyond current levels, because recent superlong auctions
confirmed that there is still demand from domestic investors for
longer maturities," he said.
* The 10-year JGB futures contract ended morning
trade down 0.01 point at 144.61, moving away from a nine-year
high of 144.73 hit on Friday but still holding above support at
the 5-day moving average, now at 144.59.
* In cash trading, 10-year yields inched up
half a basis point to 0.735 percent.
* The superlong sector edged slightly higher. Yields on
20-year debt and on 30-year bonds
both slipped half a basis point to 1.670 percent and 1.940