TOKYO, March 5 Benchmark Japanese government
bond yields crept higher ahead of a 10-year sale on Tuesday, but
not before yields marked their lowest in a decade on continued
expectations of vigorous easing from the Bank of Japan.
* The government's nominees to be BOJ deputy governors,
Hiroshi Nakaso and Kikuo Iwata, underscored on Tuesday their
commitment to beat deflation if appointed.
* The yield on the benchmark 10-year JGB
added half a basis point to 0.610 percent after earlier dropping
as low as 0.585 percent, its lowest since June 2003.
* The Ministry of Finance offered 2.4 trillion yen ($25.7
billion) of 10-year JGBs with a coupon of 0.6 percent, the
lowest since June 2003's 0.5 percent.
* "Even with that coupon, auction demand will probably be
robust due to the timing at the end of the fiscal year, as well
as the BOJ expectations," said a fixed-income fund manager at a
Japanese asset management firm.
Japanese investors continued buying ahead of the March 3
financial year-end, he said.
* The 10-year JGB futures contract, slipped 0.12
point after rising to a morning session peak of 145.38, an
* Superlong bonds continued their rally, with the 30-year
bond yield shedding 1.5 basis points to 1.660
percent, its lowest level since August 2010. In the previous
session, the 30-year yield plunged fell 9.0 basis points, its
biggest daily fall since mid-2010.
The 20-year yield also wallowed at its lowest
levels since mid-2003, losing 1 basis point to 1.480 percent
after cratering 9 basis points on Monday.