Reuters: Market News: JGBs tick up slightly on Treasuries, month-end buying hopes

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JGBs tick up slightly on Treasuries, month-end buying hopes Mar 26th 2012, 02:27 TOKYO, March 26 | Sun Mar 25, 2012 10:27pm EDT TOKYO, March 26 (Reuters) - Japanese government bonds edged up slightly on Monday, drawing support from U.S. bonds, but gains were seen limited with most Japanese market investors happy to stay on the sidelines ahead of their financial year-end later this week. * The 10-year JGB futures ticked up 0.05 point to 141.66, but did not have momentum to clear last week's high of 141.76. * U.S. bond yields dipped on Friday on fresh concerns over Europe and worries about slower growth, mildly supporting JGBs. * Expectations that some pension funds will buy JGBs at the end of month to extend the duration of their portfolio are also supporting the market. * A Reuters weekly survey showed sentiment in Japanese government bond market improved to a level last seen in late January. * The survey's JGB bull-bear diffusion index rose to plus 7 from minus 12 in the previous survey, rising to positive territory for the first time since mid-February and matching a high hit in late January. * But some market players also think investors could start profit-taking once the new financial year begins, especially if the 10-year cash bond yield edges near the one percent mark. * The 10-year cash bond yield fell a half basis point to 1.020 percent, extending its slide from a 3 1/2-month high of 1.060 percent hit earlier this month. * Yields on most other maturities also fell 0.5 basis points, with the five-year yield falling to 0.335 percent and the 20-year bond yield slipping to 1.765 percent. * Most Japanese players are not willing to actively trade now, not wanting to suffer unexpected losses ahead of their book-closing on March 31. * Trade volume in JGB futures by midday was just 6,126 contracts, about 25 percent of daily volumes of around 27,000 so far this year. Link this Share this Digg this Email Reprints

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