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JGBs tick up on U.S. bonds, investors look to longer duration
July 28, 2014 / 3:01 AM / 3 years ago

JGBs tick up on U.S. bonds, investors look to longer duration

TOKYO, July 28 (IFR) - Japanese government bond prices ticked up on Monday, supported by rise in U.S. bond prices and buying in the long end from investors who gave up waiting for dips.

The 10-year cash bond yield dipped 0.5 basis point to 0.520 percent while the 10-year futures price rose 0.09 point to 146.00.

Many investors hesitate to buy 10-year paper near the yield of 0.50 percent, thinking that the scope for an immediate downside move in yield seems to be limited and looking for longer maturities instead.

The 30-year yield dipped 1.0 basis point to 1.645 percent .

One market player said that the latest evidence for investor appetite for superlong bonds was seen at last week’s 20-year auction which drew demand not only from pension funds and life insurers but also from some regional banks.

Participants expect yields to remain under downward pressure this week as the BOJ is expected to undertake JGB purchasing operations on Wednesday and as month-end buying by pension funds is expected to appear on Thursday. (Reporting by Takahiro Okamoto; Editing by Eric Meijer)

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