TOKYO, Feb 12 (IFR) - Japanese government bond prices dipped on Wednesday after Federal Reserve Chair Janet Yellen sharpened investors’ risk appetite with a pledge to continue tapering the Fed’s stimulus drive - despite a still-unstable U.S. labour market.
JGBs were hit by a rise in stocks rose and fall in U.S. Treasuries, as investors cheered Yellen’s rock-no-boats approach on Tuesday in her first public comments as Fed chief.
The benchmark 10-year JGB yield rose 1 basis point to 0.610 percent in midmorning trading. Lead March 10-year JGB futures slipped 0.07 point to 144.78 at the end of midmorning trade.
The bond market was subdued in the morning session but traders said activity could pick up after participants gauge the results of Ministry of Finance’s liquidity-enhancing JGB auction later in the afternoon.
Under these auctions the MOF sells already-issued JGBs to the market to enhance bond liquidity.