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JGBs slip on strong U.S. jobs data, weak yen
December 8, 2014 / 3:17 AM / in 3 years

JGBs slip on strong U.S. jobs data, weak yen

TOKYO, Dec 8 (IFR) - Japanese Government Bond prices slipped on Monday, sending their yields up 0.5 to 1.0 basis points, following surprisingly strong U.S. non-farm payroll data.

Also denting JGBs, the yen weakened to its lowest level since July 2007, helping to underpin Tokyo share prices, while the bank of Japan did not offer to buy mid- to long-term JGBs on Monday, contrary to market expectations.

Domestic real money accounts were largely sidelined, however, taking a wait-and-see stance, JGB traders said.

The yield on the current 5-year JGBs rose 0.5 basis point to 0.075 percent, while the 10-year yield was up 1.0 basis point at 0.430 percent.

In the super-long zone, the 20-year yield rose 0.5 basis point to 1.185 percent while the 30-year yield was flat at 1.415 percent ahead of Tuesday’s 30-yr JGB auction.

The benchmark December 10-year JGB futures fell 0.10 point to at 147.22 ahead of Thursday’s expiry.

The market showed limited response to downward revision in Japan’s July-September GDP.

The government data showed the economy shrank an annualised 1.9 percent, larger than initial reading of a 1.6 percent contraction as both private and public capital spending were revised downward. (Reporting by Masatsugu Hisatsune; Editing by Richard Borsuk)

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