JGB futures open flat ahead of 2-yr auction

TOKYO, March 24 (Reuters) – Japanese government bond futures
opened flat ahead of a two-year bond auction on Thursday as
dealers tried to assess the damage from a trio of disasters that
struck Japan this month.

* Players said investors were not actively shifting
positions as it was hard to read the extent to which Japanese
bank lending would be affected by the disasters.

* “Around this time of month, it is hard for Japanese
investors to shift money ahead of the fiscal year-end. Investors
may become more active when the settlement date shifts to
April,” said Takafumi Yamawaki, chief rates strategist at
JPMorgan.

* Players said foreigners finished reallocating their
portfolios in stocks and bonds immediately after the devastating
March 11 earthquake and tsunami in northeast Japan and they are
now seen assessing the economic impact of the crisis.

* The market focus is a 2.6 trillion yen ($32.1 billion)
two-year JGB auction at 10:30 a.m. (0130 GMT). Analysts expected
decent demand as markets are recovering from recent turbulence
that followed the earthquake and ensuing nuclear safety crisis.
A decent result from Wednesday’s three-month treasury discount
bill auction suggested that players now have cash to work with.
But some said investors might remain cautious as stocks had been
volatile ahead of the fiscal year end.

* Katsutoshi Inadome, fixed-income strategist at Mitsubishi
UFJ Morgan Stanley Securities, said the two-year zone had become
expensive compared with medium- and longer-term maturities since
the previous auction in February, but with players holding ample
cash positions after the Bank of Japan’s heavy cash injections
into the money market, the market was unlikely to have problems
absorbing new bonds.

* Others also noted that the two-year yield
looked higher than it should be, since the BOJ is unlikely to
end its loose monetary policy within two years.

* The benchmark 10-year yield was unchanged
at 1.215 percent.

* June 10-year futures edged up 0.01 point to
139.74. The two-year yield was up 1.0 basis point at 0.220
percent.

($1=80.91 Yen)
(Reporting by Akiko Takeda; Editing by Edmund Klamann)

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JGB historical auction results

JGB benchmark data from JBTC brokers’ broker
(0#JPBMK=: Quote, Profile, Research) JGB composite data from Reuters
(0#JPTSY=: Quote, Profile, Research) JGB long and super-long sectors (OTC)
(0#JPTSYM=: Quote, Profile, Research) JGB medium-term sector (OTC)

JGB futures composite

Japanese debt Speed Guide

Yen currency/swaps/derivatives Speed Guide
(0#JPTSY1=BBCL: Quote, Profile, Research) JGB closing prices/yields from brokers’
broker

Lead 10-year JGB futures on TSE
(0#2JGB:: Quote, Profile, Research) 10-year JGB futures on TSE (day session)
(0#1JGB:: Quote, Profile, Research) 10-year JGB futures on TSE (night session)
(0#FYB:: Quote, Profile, Research) 10-year JGB futures on LIFFE
(0#SJB:: Quote, Profile, Research) 10-year JGB futures on SIMEX
(0#JGB+: Quote, Profile, Research) 10-year JGB future options on TSE

Tokyo Mitsubishi Securities yen bond index
(0#JEY:: Quote, Profile, Research) TIFFE euroyen futures
(0#SEY:: Quote, Profile, Research) SIMEX euroyen futures
(0#EY:: Quote, Profile, Research) CME euroyen futures

Yen OIS from Meitan Tradition

Yen OIS on BOJ meetings from Meitan Tradition

Yen OIS from Totan Capital

Yen TIBOR (Tokyo interbank offered rate)

Yen LIBOR (London interbank offered rate)

Yen interest rate swaps contributed

Yen interest rate swaps from Totan Capital

World yields summary

JGB futures open flat ahead of 2-yr auction