JGB futures dip on Treasuries; debt issue plan eyed

TOKYO, Dec 24 (BestGrowthStock) – Japanese government bond futures
dipped on Friday, drawing early cues from weaker U.S. Treasuries,
while the market awaited official confirmation of details of debt
issuance plans for the next fiscal year, due later in the day.

* JGBs were rangebound and liquidity was low as market
participants wound down their operations ahead of the year-end
holidays.

* Japan’s government is expected to approve later on Friday a
draft budget for the fiscal year starting in April 2011, which
will also include JGB issuance plans for the fiscal year.

* Japan is widely expected to keep new bond issuance
unchanged, while increasing its sales of 30-year and 40-year JGBs
by 100 billion yen ($1.2 billion) per auction but keeping the
issue amount of other maturities unchanged.

* With many details of the issuance plan already priced into
the market, however, the announcement is not expected to have a
major impact on trade.

* The Ministry of Finance currently holds eight auctions of
30-year bonds per year and issues 40-year paper every quarter.

* March 10-year futures (2JGBv1: ) fell 0.10 point to 139.75,
with a slip by Tokyo’s benchmark Nikkei stock average (.N225: )
limiting losses.

* The benchmark 10-year yield (JP10YTN=JBTC: ) stood unchanged
at 1.140 percent.
($1=82.96 Yen)
(Reporting by Shinichi Saoshiro; Editing by Edmund Klamann)

JGB futures dip on Treasuries; debt issue plan eyed