TOKYO, Aug 30: Japanese government bonds were mixed on Friday, with the 30-year yield down to a three-month low on the back of month-end demand from pension funds.
* ‘Today’s JGB market is supported by the massive demand from pension funds and index funds, especially for long-dated bonds over 10 years,’ said Akito Fukunaga, chief rates strategist at Royal Bank of Scotland in Tokyo.
‘But this week’s yield declining will be reversed somewhat next week,’ he said, adding that investors would focus on Friday’s stronger Japanese economic data after the month-end buying.
* The 30-year yield dipped 0.5 basis point to 1.735 percent, hitting a three-month low, though the 20-year yield added 0.5 basis point to 1.635 percent.
* The 10-year yield was unchanged at 0.705 percent, holding at a 3-1/2 month low, shrugging off data that showed Japan’s consumer prices accelerated to their highest in nearly five years in July.
* Ten-year futures added 0.05 point to 144.46 after trading as high as 144.48 to 3-1/2 month high.
* The Bank of Japan offered to buy 400 billion yen ($4.1 billion) of JGBs with residual maturities of five to 10 years, as part of its bond-buying programme to spur growth in the world’s third-largest economy.
(AGENCIES)
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