TOKYO Aug 6 Japanese government bond prices
were slightly easier on Tuesday on caution over an auction of
long-term JGBs later in the day and after U.S. Treasuries
slipped overnight on strong U.S. service data.
* The yield on the benchmark 10-year JGBs rose 0.5 basis
point to 0.775 percent a day after having posted
its largest fall in seven weeks following slower-than-expected
U.S. jobs growth.
* The 20-year bond yield rose 1.0 basis point to 1.705
percent while the 30-year yield rose 1.0 basis
point to 1.820 percent.
* The Ministry of Finance offered 300 billion yen of bonds
in a "liquidity-enhancing" auction, in which the ministry
re-offers existing 20- to 40-year bonds.
* "The talk in the market is that the auction may be a
little bit weak," said Tadashi Matsukawa, the head of fixed
income investments at PineBridge Investments in Tokyo.
* JGBs were not helped by a soft tone in U.S. Treasuries
overnight. U.S. debt prices eased on Monday after the Institute
for Supply Management's index on the U.S. services sector jumped
to 56.0 from 52.2 in June, well beyond economists' forecast of
* Ten-year JGB futures prices were flat at 143.72
at midday. Trading volume was a paltry 5,669 lots, less than
one-fifth of the average daily volume so far this year.