TOKYO, June 24 (IFR) - Japanese government bond prices were
steady on Tuesday, as investors waited for the Japanese
government to deliver its latest instalment of long-term
economic policies later in the day.
Japanese Prime Minister Shinzo Abe will detail his so-called
"third arrow" policies including phased corporate tax cuts and
reforms for the $1.26 trillion Government Pension Investment
Fund (GPIF), the world's biggest pension fund.
The Ministry of Finance conducted a 400 billion yen ($3.92
billion) liquidity enhancement auction of off-the-run 10-year
and 20-year JGBs, and trading related to this accounted for most
of Tuesday's market activity.
Some investors sought 10-year JGBs maturing in around 5
years (issue #302, due June 2019, and issue #303, due Sept
2019), which sent their yields down 1 to 1.5 basis points from
the previous session.
In the latest liquidity enhancement auction on May 22, those
two issues accounted for more than 90 percent of the total issue
amount, with issue #302 comprising more than half, at 203
billion yen; and #303 accounting for 167 billion yen. Some
investors were forced to cover their short positions, market
Cash activity in the long-term and super-long JGBs was
limited to transactions among dealers, according to JGB traders.
At midday, yields on the current 10-year,
20-year, and 30-year JGBs were
unchanged from the previous session at 0.580 percent, 1.450
percent and 1.710 percent, respectively
Ten-year lead September JGB futures moved in a
range between 145.39 and 145.46 range and ended the morning
session up 0.06 point at 145.44.
($1 = 102.0500 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Kim Coghill)