August 21, 2017 / 5:32 AM / a year ago

Benchmark JGBs steady, underpinned by Treasuries

TOKYO, Aug 21 (Reuters) - Benchmark Japanese government bonds were steady on Monday, underpinned by firmer U.S. Treasuries and weaker Japanese stocks.

The 10-year cash JGB yield was flat at 0.035 percent, while the September 10-year JGB futures contract was up 0.07 point in afternoon trading at 150.78, touching its highest intraday levels since June 7.

The benchmark 10-year U.S. Treasuries yield dropped to 2.162 percent on Friday, its lowest since late June, before closing at 2.194 percent. It last stood at 2.199 percent.

The Nikkei stock index was 0.3 percent lower in afternoon trade.

In the superlong zone, the 20-year JGB yield edged down half a basis point to 0.555 percent, while the 30-year JGB yield was down half a basis point at 0.845 percent.

But yields on the shorter end of the curve inched higher, with the yield on the five-year JGB up half a basis point at minus 0.095 percent, while the two-year JGB yield was up half a basis point at minus 0.130 percent.

On Wednesday last week, the Bank of Japan took advantage of thin liquidity during the summer vacation season to slightly reduce its JGB buying with minimal market impact. It trimmed its buying of five- to 10-year JGBs to 440 billion yen ($4.03 billion) in its purchase operation from 470 billion yen in the previous four operations.

$1 = 109.2600 yen Reporting by Tokyo markets team; Editing by Eric Meijer

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