JGB futures dip; fall limited as Nikkei struggles

TOKYO, May 24 (BestGrowthStock) – Japanese government bond futures
slipped from a two-year high on Monday as investors took profits
from a recent rally, but falls were limited as the Nikkei share
average extended losses made last week.

* JGBs were also pressured after U.S. Treasuries ended
slightly lower on Friday following volatile trade. [US/]

* U.S. stocks (Read more about the stock market today. ) snapped a three-day losing streak on Friday as
investors bought shares hammered by days of selling on fear the
euro zone debt crisis would spill over and hamper global growth.
But the Nikkei share average (.N225: ) fell 0.6 percent in early
trade, extending losses made last week during its biggest weekly
drop in over a year. [.T]

* JGBs benefited from increased investor demand for safety,
though not by as much as other major bond markets like U.S.
Treasuries.

* June 10-year futures were down 0.07 point at 140.33
(2JGBv1: ), but stayed in a reach of a two-year high of 140.61
struck on Friday.

* The benchmark 10-year yield rose a basis point to 1.245
percent (JP10YTN=JBTC: ), after having hit a five-month low on
Friday of 1.220 percent. The 20-year yield rose a basis point to
2.010 percent (JP20YTN=JBTC: ), up from a five-month low of 2.000
percent touched late last week.

* Japan Post Bank aggressively bought U.S. bonds when the
dollar fell below 90 yen late last year, a bank official was
quoted as saying on Sunday, and data showed its holdings of such
bonds rose sharply in the six months to March. [ID:nTOE64M01N]

* Analysts said the report would be negative for the JGB
market since Japan Post Bank is a major JGB investor. But it had
little impact so far on Monday, with the market supported by
deepening concerns over Europe’s debt crisis, while there has
already been talk of Japan Post Bank diversifying its assets
since last year.

Money

JGB futures dip; fall limited as Nikkei struggles