TOKYO May 29 Japanese government bond prices
slipped on Monday as traders made room for an auction of
two-year JGBs the following day, with market showing limited
reaction to North Korea's firing of a short-range missile.
The 10-year JGB yield was flat at 0.035 percent
, while the two-year yield edged up 0.5 basis
point at minus 0.165 percent.
Buyers were cautious as the Ministry of Finance will auction
2.2 trillion yen of two-year bonds on Tuesday.
North Korea fired at least one short-range ballistic missile
on Monday that landed in the sea off its east coast, the latest
in a fast-paced series of missile tests defying world pressure,
but there were no flight-to-quality buying in bonds.
The price of 10-year JGB futures slipped 0.02 point
to 150.63. Trade volume was 11,085, the lowest in almost two
months, due partly to market holidays in London and New York.
(Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)