TOKYO, July 18 (IFR) - Japanese government bond prices were
little changed on Friday, rising early on an overnight surge in
U.S. Treasuries and weaker Tokyo shares, but handing back gains
as the market braced for a fresh supply of debt.
The benchmark 10-year JGB yield stood
unchanged at 0.530 percent after initially dipping to 0.510
September 10-year JGB futures was also flat on the
day, at 145.93 after rising to 146.00 earlier in the session.
The Ministry of Finance offered 270 billion yen ($2.67
billion) of five-year JGBs on Friday. Traders expect the new
JGBs to be relatively well received by investors although the
coupon on the new debt was set at 0.1 percent, the lowest since
U.S. Treasury prices rose on Thursday as investors sought a
safe haven after news a Malaysian passenger plane came down over
eastern Ukraine, an area of increasing conflict between the
government and pro-Moscow rebels.
Japan's Nikkei share average dropped to a one-week low on
Friday morning and posted its biggest one-day fall in two months
as investors turned risk averse after the Malaysian airliner
($1 = 101.3000 Japanese Yen)
(Reporting by Masatsugu Hisatsune; Editing by Jacqueline Wong)