TOKYO, April 12 U.S. 10-year Treasuries edged
higher on Friday, with no more supply ahead this week after the
conclusion of the last of three U.S. debt sales.
* Thursday's sale of $13 billion of 30-year bond sale met
lukewarm demand. Data from this week's $66 billion in
longer-dated supply suggested no special buying interest from
Japanese institutions and funds, who many expect to increase
foreign bond-buying from now after the Bank of Japan said last
week it will pump about $1.4 trillion into the economy in less
than two years.
* The Japanese government bond market has been extremely
volatile since the announcement, as the central bank fine-tunes
its purchasing operations and communications.
* "It is hard to think about investing anywhere, in such
market conditions," said a fixed-income fund manager at a
European asset management firm in Tokyo.
Other market participants said that until the JGB market
calms down and adjusts to a new regime in which the central bank
makes purchases totaling about 70 percent of newly issued debt,
it would hard for institutions to figure out any new allocation
* The yield on ten-year Treasuries slipped
slightly to 1.792 percent, from 1.795 percent in late U.S. trade
* The yield on 30-year Treasuries edged down to
2.998 percent, from 3.001 percent on Thursday.
* On the data front, the U.S. government will release its
report on retail sales later on Friday. The median forecast
among economists polled by Reuters was for retail sales to show
no change in March after a 1.1 percent jump in February, but a
stronger-than-expected reading could prompt economists to hike
their forecasts for first-quarter U.S. growth.