TOKYO, Aug 18 (IFR) - Japanese government bonds were
slightly firmer on Monday, riding on last week's rally in U.S.
Treasuries, with the benchmark yield edging down to match
Friday's 16-month low.
Rising tensions between Russia and Ukraine on Friday sent
the yield on benchmark 10-year U.S. Treasury notes
to a session low of 2.30 percent, its lowest since June 2013.
Bond yields move inversely to prices.
JGB investors were cautious ahead of Tuesday's monthly 1.2
trillion yen ($11.73 billion) 20-year JGB auction, which will
re-open the current issue number 149.
Activity was thin on Monday, with trading volumes of the
current 10- and 20-year JGBs on JBT, the largest interdealer
broker, totalling only 15.5 billion yen and 6 billion yen,
respectively, in the morning session.
Contrary to market expectations, the Bank of Japan did not
offer to buy any JGBs on Monday under its massive asset-purchase
The yield on the current 10-year JGBs fell
0.5 basis point to 0.495 percent, while the current 20-year
yield slipped 1 basis point to 1.350 percent, its
lowest level since mid-July.
In the longer-dated zone, the 30-year yield
was down 0.5 basis point to 1.660 percent, while the 40-year
yield was flat at 1.795 percent.
Lead September JGB futures moved in an extremely
narrow 146.20-146.24 range in the morning session before
finishing at midday up 0.07 point at 146.23.
(1 US dollar = 102.2700 Japanese yen)
(Reporting by Masatsugu Hisatsune; Editing by Sunil Nair)