TOKYO, July 2 (IFR) - Benchmark Japanese government bond
prices slipped slightly on Wednesday ahead of Thursday's 10-year
sale, while prices were steady in the superlong zone.
JGBs opened softer on the back of weaker U.S. Treasuries and
higher stocks overnight, but 20-year to 30-year JGBs recovered
most of their earlier losses. A few regional banks sold 10-year
JGBs maturing in around 6 years, while other investors bought
the current 10-year JGBs on dips at 0.56 percent, ahead of
Thursday's monthly 2.4 trillion yen ($23.62 billion) 10-year JGB
The Bank of Japan did not offer to buy JGBs under its
massive asset-buying scheme on Wednesday. The 10-year JGB
extended losses after the central bank refrained from entering
the market, with its yield adding 1 basis point
to 0.560 percent.
Market participants expect the central bank to buy JGBs on
Friday, a day after the 10-year sale, as it typically refrains
from buying on days that the Ministry of Finance conducts
The yield on the current 5-year JGBs added 0.5
basis point to 0.165 percent.
In the superlong zone, the 20-year yield was
flat at 1.420 percent, compared with 1.430 percent earlier,
while the 30-year yield was also flat at 1.670
percent, compared with 1.675 percent earlier.
Ten-year lead September JGB futures moved in a
narrow range of 145.61 to 145.67 and ended the morning session
down 0.04 point at 145.66.
($1 = 101.6100 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Richard Borsuk)