Long-end JGBs bounce after bear run, short-end lags

* Duration extensions support longer-dated debt

* Curve flattens until 10-year zone as short-end sags

* Short-end hit as excessive easing prospects pared

* 2-year yield touches fresh 1-year high

By Shinichi Saoshiro

TOKYO, Nov 29 (BestGrowthStock) – Longer-dated Japanese government
bonds bounced on Monday as bargain hunting emerged after last
week’s bear run, although a rise in Tokyo stocks and caution
ahead of a 10-year debt sale later in the week limited gains.

The yield curve flattened until the 10-year zone, as the JGB
short-end continued to sag.

The two-year yield edged up to a fresh one-year peak, while
the long-end staged a modest bounce. The two-year/10-year yield
spread tightened to 97 basis points from 99 basis points on
Friday, its highest in 2-