TOKYO, Sept 4 (IFR) - Japanese government bond prices opened
slightly higher on Wednesday, shrugging off a rise in U.S.
Treasury yields overnight, with the focus shifting to the Bank
of Japan's policy-setting meeting.
JGB players expect the BOJ, which began its monthly two-day
policy board meeting on Wednesday, to keep its current monetary
policy stance intact.
In the secondary market, the BOJ offered to buy 600 billion
yen worth of JGBs with residual maturities of five to more than
10 years under its massive bond-buying programme.
Yields on the current 5-year JGBs were
indicated at 0.265 percent on the offer, unchanged from
Tuesday's level, while the new 30s (#330) were
down 0.5 basis point at 0.76 percent.
The 20s were flat at 1.80 percent. JGB
futures are up 0.09 at 144.10, moving in a
144.03-144.17 range. JGB futures rose to as high as 144.17
(+0.16) when an earthquake hit Tokyo around 0020 GMT
In morning trade, a few regional banks sold 5-year JGBs,
while other domestic institutional investors were seen largely
sidelined ahead of Thursday's BOJ decision, Friday's U.S.
non-farm payroll data, and the results of Tokyo's bid for the
2020 Olympic Games due on Sept. 7.
The Nikkei newspaper reported that domestic corporate bond
issuance sharply increased to 6.38 trillion yen from January to
August, the highest level since 2009.
In August, corporate bond issuance in the 10-year and longer
zone accounted for around 40 percent of the total issued in the
month. The Nikkei report, however, had only a limited negative
impact on JGBs.