JGBs hit by Nikkei jump, yield rise may abate

* Speculators unload longs in futures as Nikkei jumps 2.1 pct

* Futures slip into Ichimoku cloud for first time since April

* Bargain hunters limit rise in superlong yields

* 10-yr/30-yr yield spread tightens a bit

By Shinichi Saoshiro

TOKYO, Sept 6 (BestGrowthStock) – Japanese government bonds fell on
Monday with futures dropping to a two-month low as a continuing
bounce in Tokyo stocks curbed demand for debt, although
bargain-hunting in superlongs suggested that the recent sharp
rise in yields may begin abating.

The curve flattened a touch as yields beyond the 10-year zone
rose slightly less with investors buying superlong debt such as
the 20- and 30-years on price dips.

“The JGB market’s retreat could continue for a few more days,
with the 10-year yield rising above 1.200 percent,” said a fund
manager at a domestic asset management firm.

The benchmark 10-year yield (JP10YTN=JBTC: ) climbed 5.5 basis
points to 1.190 percent, after touching a 2-