TOKYO, June 12 (IFR) - Japanese government bond prices ended
the morning session slightly higher on Thursday, but moves were
limited ahead of this session's sale of 5-year notes.
A modest fall in U.S. Treasury yields and stock prices
overnight, as well as a drop in the Nikkei stock average
, also had some positive impact on JGB market sentiment.
The Ministry of Finance offered 2.7 trillion yen ($26.44
billion) of 5-year JGBs with the coupon on the new issue (number
118, maturing June 20, 2019) set at 0.2 percent for the 9th
JGB market participants expected the auction to go smoothly
as many domestic institutional investors, including commercial
banks, seem willing to park funds in 5-year JGBs.
According to money managers and JGB traders, many regional
banks are expected to buy the new 5-year JGBs in
larger-than-usual lots in Thursday's auction ahead of June 20's
massive quarterly redemption of JGBs.
The yield on the current 5-year JGBs slipped
0.5 basis point from Wednesday to 0.175 percent, while the
10-year yield also inched down 0.5 basis point to
In the superlong zone, the 20-year yield shed
1 basis point to 1.445 percent, ahead of next Tuesday's monthly
sale of 1.2 trillion yen of 20-year JGBs. The 30-year yield
edged down 0.5 basis point to 1.705 percent.
Ten-year lead September JGB futures moved in a
narrow 145.22-145.29 range before finishing the morning session
up 0.10 point at 145.26.
($1 = 102.1100 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Eric Meijer)