Japanese government bonds end morning higher
Published November 6th, 2007
Japanese government bond prices ended the morning session mostly higher Tuesday but investors were largely on the sidelines ahead of the results of Japan’s first-ever auction of 40-year bonds.
The Ministry of Finance said it will offer up to 100 billion yen worth of the bonds which will be issued on Nov 20 and will mature on March 20, 2048. The results of the auction will be announced early afternoon.
‘Demand is expected to be solid as the offer size is small and it is the first auction of 40-year bonds,’ said Shingo Narue, assistant manager at Mitsubishi UFJ Securities.
Overnight, US bond prices fell, with the yield on the benchmark 10-year Treasury note rising to 4.34 percent from 4.32 percent late Friday.
US stocks slipped as investors grew more concerned about a deteriorating housing market and the widening impact of bad debt after Citigroup Inc (NYSE:C) warned it will book additional losses.
‘US financial markets were relatively calm but the Japanese bond market will continue to monitor the impact of the subprime loan crisis,’ Narue said.
At the break, the yield on the benchmark 10-year bond was down at 1.570 percent from 1.580 percent late Monday.
The yield on the two-year note was flat at 0.780 percent and the yield on the five-year note edged down to 1.100 percent from 1.105 percent.
The yield on the 20-year bond slipped to 2.110 percent from 2.120 percent, and the yield on the 30-year bond fell to 2.340 percent from 2.350 percent.
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