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TOKYO (XFN-ASIA) - Japanese government bond prices ended lower as investors took profits following the release of data
which raised hopes that gross domestic product for the three months to March may be revised upward,
dealers said.
A survey by the Ministry of Finance showed that combined capital spending by non-financial firms jumped 13.6 pct year-on-year in the first quarter of the year, rising for the 16th consecutive quarter.
Economists said the data may lift GDP for the March quarter. Preliminary estimates released earlier
showed Japan's GDP expanded 0.6 pct in January-March compared to the previous three-month
period with annualized growth at 2.4 pct, about half the previous quarter's pace.
"Non-residential investment is most likely to be revised to show no change in the January-March period from the previous quarter," said Tetsuro Sawano, strategist at Mitsubishi UFJ Securities.
"This upward revision alone is most likely to push up overall GDP growth to an annualized figure of around 3.0 pct."
The government will release revised GDP data for the first quarter next Monday.
The yield on the benchmark 10-year bond climbed to 1.795 pct from 1.775 pct at the close Friday.
The yield on two-year bonds rose to 0.990 pct from 0.980 pct, while the yield on five-year bonds advanced to 1.390 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 2.370 pct from 2.345 pct.
Bond prices move inversely to yields.
The price of the June futures contract for 10-year bonds dipped to 132.74 yen from 132.86 yen at the close Friday.
Naomi Hasegawa, senior strategist at Mitsubishi UFJ Securities, said the JGB market also tracked
the weakness in US Treasury prices on Friday and suffered from gains in Tokyo's 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.
The benchmark Nikkei 225 Stock Average closed up 14.54 points or 0.08 pct at 17,973.42, its best level in three months, thanks to Wall Street's gains on Friday and the softer yen.
(1 usd = 121.01 yen)
TOKYO (XFN-ASIA) - Japanese government bond prices ended lower as investors took profits following the release of data
which raised hopes that gross domestic product for the three months to March may be revised upward,
dealers said.
A survey by the Ministry of Finance showed that combined capital spending by non-financial firms jumped 13.6 pct year-on-year in the first quarter of the year, rising for the 16th consecutive quarter.
Economists said the data may lift GDP for the March quarter. Preliminary estimates released earlier
showed Japan's GDP expanded 0.6 pct in January-March compared to the previous three-month
period with annualized growth at 2.4 pct, about half the previous quarter's pace.
"Non-residential investment is most likely to be revised to show no change in the January-March period from the previous quarter," said Tetsuro Sawano, strategist at Mitsubishi UFJ Securities.
"This upward revision alone is most likely to push up overall GDP growth to an annualized figure of around 3.0 pct."
The government will release revised GDP data for the first quarter next Monday.
The yield on the benchmark 10-year bond climbed to 1.795 pct from 1.775 pct at the close Friday.
The yield on two-year bonds rose to 0.990 pct from 0.980 pct, while the yield on five-year bonds advanced to 1.390 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 2.370 pct from 2.345 pct.
Bond prices move inversely to yields.
The price of the June futures contract for 10-year bonds dipped to 132.74 yen from 132.86 yen at the close Friday.
Naomi Hasegawa, senior strategist at Mitsubishi UFJ Securities, said the JGB market also tracked
the weakness in US Treasury prices on Friday and suffered from gains in Tokyo's 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.
The benchmark Nikkei 225 Stock Average closed up 14.54 points or 0.08 pct at 17,973.42, its best level in three months, thanks to Wall Street's gains on Friday and the softer yen.
(1 usd = 121.01 yen)
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