JGBs edge up, superlongs gain on bargain hunting

* Investors scoop up superlongs before fiscal year-end

* Futures bounce modestly as post-BOJ selling peters out

* Yield curve flattens, 5-yr/30-yr spread tightens

By Shinichi Saoshiro

TOKYO, March 19 (BestGrowthStock) – Japanese government bonds gained
on Friday with futures pulling back from a four-month low, while
the yield curve flattened as superlong debt rose as investors
hunted for bargains ahead of the new domestic fiscal year.

Buyers like pension funds and life insurers acquired 20- and
30-year debt to tweak their positions before the March 31 fiscal
year-end, market players said.

The 20-year yield (JP20YTN=JBTC: ) fell 0.5 basis point to
2.160 percent after brushing a one-month high of 2.170 percent.
Analysts said investor bargain hunting begins to emerge when the
20-year yield nears 2.20 percent.

“Investors are inclined to buy when the 20-year drifts up
towards 2.20 percent, which looks an attractive level to purchase
considering how well pinned short-term yields are,” said Genji
Tsukatani, head of fixed income investment management at asset
manager Schroders.

The two-year yield (JP2YTN=JBTC: ), held down by the Bank of
Japan’s easy monetary policy, was flat at 0.140 percent, within
striking distance of a 4-

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