TOKYO Aug 30 Japanese government bonds were
mixed on Friday, with the 30-year yield down to a three-month
low on the back of month-end demand from pension funds.
* "Today's JGB market is supported by the massive demand
from pension funds and index funds, especially for long-dated
bonds over 10 years," said Akito Fukunaga, chief rates
strategist at Royal Bank of Scotland in Tokyo.
"But this week's yield declining will be reversed somewhat
next week," he said, adding that investors would focus on
Friday's stronger Japanese economic data after the month-end
* The 30-year yield dipped 0.5 basis point to
1.735 percent, hitting a three-month low, though the 20-year
yield added 0.5 basis point to 1.635 percent.
* The 10-year yield was unchanged at 0.705
percent, holding at a 3-1/2 month low, shrugging off data that
showed Japan's consumer prices accelerated to their highest in
nearly five years in July.
* Ten-year futures added 0.05 point to 144.46 after
trading as high as 144.48 to 3-1/2 month high.
* The Bank of Japan offered to buy 400 billion yen ($4.1
billion) of JGBs with residual maturities of five to 10 years,
as part of its bond-buying programme to spur growth in the
world's third-largest economy.