TOKYO, Sept 2 (IFR) - Japanese government bond prices opened
slightly lower on Monday, weighed down by improved capital
spending data and caution ahead of Tuesday's monthly 10-year JGB
* In very quiet trading, the new 10-year JGBs (issue number
330, due Sept 2033) are now offered at 0.775 percent on a
when-issued basis for the Sept 20 payment date.
* JGB players have to add around 2.5 basis points to yields
on the current issue (number 329, 0.8 percent due June 3, 2033)
to get those on the new issue (number 330), taking into account
a three-month extension of maturity and a 15-day delay in the
Judging from the current trading level of the new issue, the
Ministry of Finance is expected to set the coupon of the new
issue at 0.8 percent, unchanged from last month.
* One large nationwide public pension fund will buy JGBs
across the curve on Monday for its turn-of-the-month duration
adjustments, while the Bank of Japan is also expected to buy
JGBs today under its massive JGB-buying program. Under these
circumstances, it seems to be hard for dealers to sell JGBs
* Earlier, the finance ministry published its April-June
corporate business survey. The closely-watched April-June
capital spending stood unchanged from the same period a year
ago, after having fallen for two quarters. April-June capital
spending, excluding software, rose 2.9 percent from the previous
year, up for the 3rd straight quarter. The data had some
negative impact on JGBs amid a rebound in Tokyo stocks and
* The yield on the current 5-year JGB is
indicated at 0.26 percent to 0.27 percent, compared with 0.255
percent last Friday, in the wake of continued weakness in
mid-term U.S. Treasuries last Friday.
The yield on the current 10-year bonds is up
1.5 basis point at 0.735 percent, versus 0.74- percent earlier.
In the super-long zone, both the 20-year yield
and the 30-year yield are up 1
basis point at 1.65 percent and 1.765 percent, respectively.
JGB futures are down 0.15 point at 144.20, moving
in a 144.13-144.26 range.