JGBs slip as weaker Treasuries cool sentiment

TOKYO, Dec 29 (BestGrowthStock) – Japanese government bonds fell on
Wednesday, retracing the previous day’s gains, after a slide in
U.S. Treasuries cooled sentiment in a thin and choppy market
winding down before the year-end holidays.

* Market players said the lack of liquidity resulting from
reduced participation towards the year-end was causing volatility
in price moves.

* March 10-year futures (2JGBv1: ) were down 0.30 point at
139.91 after gaining nearly 0.40 point the previous day.

* U.S. Treasuries prices fell broadly on Tuesday after an
auction of five-year notes drew dismal demand. [ID:nN28201934]

* Near-term focus was on how the Treasury market would handle
a seven-year note auction later on Wednesday. The outcome is
expected to dictate direction for JGBs on Thursday, the last
trading day of the year.

* Treasuries have been one of the main sources of impetus for
JGBs this month. A tumble in U.S. bonds earlier in the month hit
the market hard by forcing domestic investors to sell JGBs to
make up for losses in their Treasury holdings.

* JGB futures were on track to gain about 0.20 point on the
year. They hit the year’s low of 138.06 in April when JGBs were
on the back foot amid the Nikkei’s rise to an 18-month high.

* Early in October futures rose to the year’s peak of 144.31,
which was also a seven-year high, after the Bank of Japan eased
monetary policy in the wake of the yen’s rise to a 15-year high
against the dollar.
(Reporting by Shinichi Saoshiro; Editing by Chris Gallagher)

JGBs slip as weaker Treasuries cool sentiment