TOKYO, Sept 5 (IFR) - Japanese government bond prices were
unmoved by the Bank of Japan holding its monetary stance
unchanged, as expected, at the end of policy meeting, having
opened narrowly mixed on Thursday, with the 10-year/20-year
yield curve flattening modestly by 1 basis point.
* While keeping policy steady, the BOJ revised up its
assessment of the economy, encouraged by growing signs the
effects of the stimulus are broadening.
* Super-long JGBs turned moderately firmer after opening
steady, supported by buying on dips by a few domestic lifers,
traders said. Mid-term to long-term JGBs softened as U.S.
Treasury yields for those zones continued to rise overnight.
* On Wednesday, one large trust bank bought a relatively
large amount of 5-year JGBs maturing in one-and-a-half years,
while some overseas funds sold super-long JGBs. This morning,
several regional banks were trying to buy 10-year JGBs on dips,
according to JGB traders.
* The yield on the current 5-year JGBs was
flat at 0.270 percent, while the yield on 10-year JGBs
was flat at 0.770 percent, compared with 0.780
In the super-long zone, yields on both 20-year JGBs
and 30-year JGBs were down 0.5
basis point, at 1.690 percent and 1.805 percent respectively.
JGB futures ended morning trade up 0.07 point at
144.04, oscillating in a 143.86-144.05 range. The Nikkei 225
index was up 0.04 percent at 14,060.52, with dollar/yen
hovering around 99.71 yen, after hitting 99.83 yen,
compared with 99.41-99.81 yen on Wednesday in Tokyo.
* JGB players wer also awaiting Friday's vital U.S.
employment data, ahead of the results of Tokyo's bid for the
2020 Olympics due early Sunday morning.