TOKYO, Nov 18 (Reuters) - Japanese government bond futures inched higher on Tuesday, supported by worries that the economy may weaken further and market expectations for the Bank of Japan to keep interest rates low in coming months.
The yield curve was seen likely to stay steep, with shorter-term notes supported by this week's dip in JGB repo rates, while super-long bonds may see some selling as dealers prepare for a 20-year bond auction on Thursday.
'The trend of stock market weakness is still in place and yesterday's gross domestic product data showed a contraction for the second straight quarter. Economic fundamentals continue to be weak,' said Naomi Hasegawa, senior fixed-income strategist for Mitsubishi UFJ Securities.
December 10-year JGB futures rose 0.19 point to 138.75 2JGBv1 in light trade, with trading volume totalling roughly 3,900 lots as of 0055 GMT.
The benchmark 10-year JGB yield was steady at 1.475 percent."
Tuesday, 18 November 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment