JGB futures hold near 7 week high, good auction helps
Published July 26th, 2007
Japanese government bond futures were flat on Thursday, holding near a seven-week high as a drop in Tokyo shares and a smooth auction of super-long paper prompted dealers to cover short positions.
JGBs initially slipped as U.S. Treasuries steadied from this week’s gains on the subprime mortgage troubles. But as the Nikkei share average (.N225: Quote, Profile, Research) fell 0.9 percent to a two-month low in late trade, the market trimmed just about all its losses.
Trade was subdued as market players remained cautious before Friday’s report on consumer prices and Sunday’s upper house election in Japan. Most investors believe the Bank of Japan is likely to raise interest rates next month.
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