(Update) JGBs Edge Lower in Absence of Trading Clues
Jiji Press English News Service. Tokyo: Jun 21, 2005. pg. 1
http://proquest.umi.com/pqdweb?did=856722821&sid=3&Fmt=3&clientId=68814&RQT=
309&VName=PQD
Abstract (Document Summary)
The yield on the newest 1.3 pct 270th issue of 10-year JGBs stood at 1.285 pct in late
interdealer trading, up from 1.280 pct late Monday.
"Many players seem willing to buy JGBs when the key 10-year yield nears 1.3 pct," said
Osamu Tamada, assistant general manager of fixed-income investment at Mizuho
Investors Securities Co. "But they are also reluctant to buy actively enough to push the
10-year yield below 1.2 pct."
Full Text (287 words)
Copyright JIJI Press America, Ltd. Jun 21, 2005
(Updating the late reading of the benchmark JGB yield in the second paragraph.)
Tokyo, June 21 (Jiji Press)--Japanese government bonds edged down on Tuesday, with
most players staying on the fence amid a lack of fresh trading incentives.
The yield on the newest 1.3 pct 270th issue of 10-year JGBs stood at 1.285 pct in late
interdealer trading, up from 1.280 pct late Monday.
In futures trading on the Tokyo Stock Exchange, the key September contract on 10-year
JGBs finished off 0.12 point from Monday at 139.85. Volume rose to 22,100 contracts
from Monday's 19,920.
Selling took the upper hand in early trading following an overnight drop in U.S.
Treasuries. But the market soon recouped part of its early losses, as a lack of followthough selling prompted a round of buybacks.
"Many players seem willing to buy JGBs when the key 10-year yield nears 1.3 pct," said
Osamu Tamada, assistant general manager of fixed-income investment at Mizuho
Investors Securities Co. "But they are also reluctant to buy actively enough to push the
10-year yield below 1.2 pct."
Traders said the market's overall mood has been supported by the Tokyo stock market's
failure to hold the benchmark Nikkei average above 11,500, as well as by the dearth of
JGB auctions in the near term.
But active buying has also been absent, as many players remain on the sidelines to wait
for key events next week, including the U.S. Federal Reserve's policy meeting on June
29-30 and the release of the Bank of Japan's "tankan" quarterly business sentiment
survey on July 1.
"Unless there are big moves on the foreign exchange and stock markets, the JGB
market is expected to stay quiet until next week," Mizuho Investors' Tamada said.END