Tokyo, July 22 (Jiji Press)–Japanese government bonds wiped out early losses to close higher Monday on a late wave of buybacks.
The yield on the benchmark 251st 10-year JGBs, carrying a coupon rate of 0.9 pct, stood at 0.955 pct in late interdealer trading, down from 0.960 pct late Friday. The Tokyo market was closed Monday for a national holiday.
Following a decline in U.S. bond prices Monday, cash JGBs came declined in the morning due to selling by hedge funds.
After the early bout of selling ran its course, JGBs in medium- term zones drew buybacks.
But active buying in such zones was held in check as Japanese Finance Minister Masajuro Shiokawa said earlier in the day that the Finance Ministry may increase issuance of 20-year and 30-year government bonds in the autumn.
Market players were keeping close tabs on Thursday’s auction of 30-year JGBs, traders said.
In futures trading, the September contract on 10-year JGBs finished up 0.12 point from Friday at 141.26 on the Tokyo Stock Exchange. Volume increased to 23,637 contracts from Friday’s 22,333.
