TOKYO Nov 30 Japanese government bonds slipped
on Friday, with benchmark yields rising off a 9-1/2-year low hit
in the previous session, taking their cues from firmer equities.
* The current 10-year cash JGB yield added 1
basis point to 0.720 percent, pulling away from 0.710 percent
which was its lowest level since June 2003.
* The benchmark 10-year JGB futures price ended
morning trade down 0.08 point at 144.75, moving farther from its
Thursday high of 144.87, which was its highest level since June
* Japanese equities advanced on Friday, with the Nikkei
share average rising 0.9 percent.
* "Stocks are firm today, so some investors are taking
profits in the 10-year sector, and further selling superlong
maturities," said a fixed-income fund manager at a Japanese
asset management firm.
"There might be more selling pressure next week, ahead of
the auctions," he added.
* The Ministry of Finance will offer 2.3 trillion yen of
10-year bonds on Tuesday and 700 billion yen of 30-year bonds on
* Even as benchmark yields fell to record lows, superlong
maturities have underperformed in recent weeks and the yield
curve has steepened on political concerns. Investors expect more
pressure on the Bank of Japan to take aggressive easing steps
after an election on Dec. 16 that will likely result in a new
* Members of the BOJ's elite monetary affairs department
have been drawing up plans for a bolder set of policy options
since late last year, people with knowledge of those discussions
say, as the bank mulls a "big bang" approach to fighting
* Yields on 20-year bonds added 1.5 basis
points to 1.680 percent, while yields on 30-year bonds
rose 1 basis point to 1.940 percent.
* Market reaction was muted to a surprise jump in Japan's
industrial output in October.
Core consumer prices were flat in October compared with a
year earlier. The November index for Tokyo, available a month
before the nationwide data, showed a drop of 0.5 percent.