Free Trial

Japan 30-Year JGB Auction Weaker; Bond Futures Sold Slightly

     TOKYO (MNI) - The results of the new 30-year Japanese government bond
auction Thursday were slightly weaker than expected, sending September 10-year
bond futures prices lower.
     The Ministry of Finance sold Y658.3 billion of the 30-year bonds, with the
lowest accepted price of 99.00, lower than the 99.10 expected by market players.
     The tail stemming from the gap between the average and accepted lowest
prices widened to 0.21 from 0.10 at the previous auction in August. A smaller
number means that investor demand is stronger.
     Immediately after the results, September 10-year bond futures fell to
151.22 from 151.26 seen before the results.
     At midday, September bond futures ended down 0.02 from Wednesday's close at
151.24.
     The new issue carries a coupon of 0.8%, unchanged from that for the current
30-year bonds.
     Bids totaled Y2.4165 trillion, making the bid-to-cover ratio 3.67, down
from 3.90 at the previous similar auction in August.
--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
[TOPICS: M$A$$$,M$J$$$,M$$FI$,MN$FI$]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.