Japanese govt bonds end morning weaker on firmer stocks
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TOKYO (XFN-ASIA) - Japanese government bond prices ended the morning session lower, mirroring losses on US Treasury bonds Friday, as investors trooped to stocks, dealers said.
At the midday break, the yield on the benchmark 10-year bond was at 1.800 pct, up from 1.775 pct at the close Friday.
The yield on two-year bonds rose to 0.995 pct from 0.980 pct, while the yield on five-year bonds advanced to 1.400 pct from 1.370 pct.
The yield on the bellwether 20-year bonds rose to 2.180 pct from 2.155 pct while the yield on 30-year debt edged up to 2.365 pct from 2.345 pct.
The price of the June futures contract for 10-year bonds dipped to 132.64 yen from 132.86 yen at the close Friday.
At the end of morning trade, the benchmark Nikkei 225 Stock Average was up 33.90 points or 0.19 pct at 17,992.78, while the TOPIX index of all first-section issues gained 4.82 points or 0.27 pct to 1,772.70.
Naomi Hasegawa, senior strategist at Mitsubishi UFJ Securities, said the JGB market tracked the weakness in US Treasury prices on Friday, and suffered from gains in Tokyo shares.
The yield on the benchmark 10-year US Treasury note rose to 4.95 pct on Friday from 4.89 pct late Thursday following the release of stronger-than-expected employment data for May.
"But there was some buying on dips as profit-taking trimmed gains in share prices," she added.
Dealers said investors are also waiting for the 10-year government bond auction tomorrow.
(1 usd = 121.80 yen)
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