February 24, 2014 / 6:20 AM / in 4 years

JGBs firm on volatile stocks, BOJ's buying

TOKYO, Feb 24 (Reuters) - Japanese government bond prices ticked up on Monday, with the benchmark 10-year yield flirting with a three-month low touched last week, supported by the Bank of Japan’s buying as well as volatile share markets.

The 10-year JGB yield fell 0.5 basis point to 0.590 percent , near a low 0.580 percent touched on Thursday.

The 10-year futures rose 0.5 point to 145.10.

The Bank of Japan bought a total of 900 billion yen of JGBs from the market, including 400 billion yen in the 5- to 10-year maturities, the sector that is seen as the tightest because of the BOJ’s bond buying.

The BOJ has said it will buy about 7 trillion yen of JGBs as a part of its massive qantitative easing to swap the economy with cash.

“Whenever the BOJ comes in, the futures prices could gain about 10 pips or so,” said a trader at a Japanese brokerage firm.

Japanese share prices also slipped from three-week high after a volatile trade, weighed in part by concerns over the global economic outlook, helping to support JGBs.

The longer end of the yield curve was capped ahead of a 40-year JGB auction on Tuesday.

The 30-year yield was flat at 1.645 percent, off a nine-month low of 1.570 percent hit earlier this month.

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