TOKYO Aug 6 The benchmark 10-year Japanese
government bond yield hovered near 15-month lows on Wednesday
amid a latest flare up in geopolitical worries, but wariness
over pushing already expensive debt prices even higher hemmed
the market in a tight range.
Tokyo's Nikkei fell 0.9 percent after Wall Street
slid overnight in wake of speculation that Russia was gathering
its forces on the border with Ukraine.
Still, weaker equities were not enough of a factor to move
JGBs, which have been confined to tight ranges as yields have
been left with less and less manoeuvring space under the Bank of
Japan's very loose monetary policy.
"Some risk aversion took place in the Tokyo markets as
expected, but currencies and stocks have not shown a strong
enough reaction. Many bond market players are on the sidelines,
wary of pushing debt prices even higher," said a dealer at a
domestic securities house.
The 10-year JGB yield stood unchanged at
0.515 percent. A drop below 0.510 percent would take the yield
to its lowest since April 2013.
September 10-year JGB futures edged up 0.04 point
(Additional reporting by Tokyo markets team; Editing by Kim