TOKYO, July 3 (IFR) - Japanese government bonds prices were
modestly lower on Thursday, as investors positioned for this
session's 10-year sale.
A continued rise in U.S. Treasury yields and stock prices
overnight had some negative impact on market sentiment ahead of
the monthly 2.4 trillion yen ($23.56 billion) sale of 10-year
The Ministry of Finance set the coupon of the new issue at
0.6 percent for the ninth straight month, re-opening the current
issue for the regular settlement date.
With yields on the current 10-year JGBs not far from the
more than one-year low of 0.550 percent touched on Tuesday,
domestic investors appear hesitant to chase higher prices in
this auction, according to JGB traders and money managers.
The Bank of Japan, as expected, refrained from purchasing
any JGBs under its massive asset-buying scheme, as it typically
does not offer to buy any JGBs on the days on which MOF conducts
auctions. The BOJ is expected to buy long-term and superlong
JGBs on Friday.
Yields on the 10-year, 20-year and 30-year JGBs all rose
half a basis point from Wednesday to 0.565 percent
, 1.425 percent and 1.675 percent
Ten-year lead September JGB futures moved in a
narrow range of 145.57-145.62 and ended the morning session down
0.05 point at 145.59.
($1 = 101.8700 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Richard Borsuk)