TOKYO, Nov 29 (IFR) - Japanese government bond prices dipped
on Friday, with the 10-year yield on track to end three straight
days of decline, while data showed Japan's consumer inflation
accelerated to a five-year high in October.
The 10-year yield was up 1 basis point at
0.610 percent after declining 4 basis points in the previous
three sessions, while 10-year JGB futures eased 4 ticks
Relatively good two-way flow was seen in the seven- to
13-year sectors among several commercial banks, while superlong
JGBs extended their earlier losses steadily into the morning
The 20-year yield added 2 basis points to
1.495 percent, while the 30-year yield was up 0.5
basis point at 1.630 percent.
A further depreciation of the yen against the dollar and the
euro, and resilient Tokyo stocks also had some negative impact
on the JGBs.
The yen fell to a five-year trough of 139.705 to the euro
and a six-month low of 102.61 to the dollar,
while the Nikkei share benchmark was almost flat after
hitting its highest closing level in nearly six years on
Data on Friday also included encouraging signs an economic
recovery was broadening and would extend into 2014, with factory
output rising for a second straight month and the availability
of jobs at the highest in nearly six years.
That bodes well for Prime Minister Shinzo Abe's goal of
reviving the world's third-largest economy and casting off 15
years of deflation through his "Abenomics" stimulus, as rising
output and demand for workers should help increase wages and
Indeed, Bank of Japan Governor Haruhiko Kuroda reiterated
his view on Friday that inflation would reach a target of 2
percent in coming years -- a goal that has been openly
challenged by a one-third of his board.