Tuesday, 31 March 2015 11:33
TOKYO: Japanese government bond prices slipped on Tuesday as a global rise in equities dented demand for safe-haven sovereign debt.
Caution ahead of a 10-year JGB auction later in the week also capped the bond market, and many investors were sidelined on the last day of the domestic fiscal year.
The five-year yield was up a basis point at 0.01 percent and the benchmark 10-year yield rose 2 basis points to 0.385 percent.
The benchmark yield fell to a record low 0.195 percent in January but was poised to end the quarter about 5 basis points higher as the market has become exposed to higher volatility due to lower liquidity -a consequence of the Bank of Japan’s extensive debt-buying scheme.
Super-long maturities fared better as index-following investors extended the duration of their portfolios as they customarily do towards the turn of each month. The 30-year yield fell 2 basis points to 1.310 percent.
Global equities rose across the board overnight, boosted by hopes that China will ease monetary policy further to shore up its economy.
Copyright Reuters, 2015
