Japanese government bonds lost ground
in Tokyo Friday, the first trading day of 2013, with a key futures
contract hitting a seven-month low, as stock prices soared thanks to
a deal to avert the so-called fiscal cliff in the United States.
The lead March futures contract on 10-year JGBs fell as low as 143.20 on the Tokyo Stock Exchange before closing at 143.32, down from 143.65 on Dec. 28, the final trading day of 2012. Turnover grew to 26,847 contracts from 24,197.
In late interdealer trading in cash JGBs, the yield on the latest 326th 10-year issue with a 0.7 pct coupon stood at 0.835 pct, a benchmark 10-year JGB yield level unseen since Sept. 13, 2012.
JGBs came under selling pressure after U.S. Congress' adoption of a bill to avoid the fiscal cliff impasse, or a combination of spending cuts and tax hikes, had helped boost stock prices and tumble bond prices in the United States.
The market is experiencing "the unwinding of risk aversion," an official of a major securities house said.
An official of a bank-affiliated brokerage, however, pointed to purchases on dips at JGB yields of over 0.8 pct.END
Most Popular Stories
- Businesses, Investors Pressing for Green Policy
- 'The Voice' Sounds Different This Season
- Congress Casts a Coy Vote on ISIS War
- Investors Fret Yahoo's Future, Stock Dips
- E-scrap Recyclers Find Profits in Upgrades
- Lower Used-Car Prices Roil the Auto Industry
- At Groupon, Not a Good Deal of Workplace Diversity
- Utah Hosts US Hispanic Chamber of Commerce Meeting
- Porn Lovers Get a New Search Engine
- NSHMBA to Rebrand With New Name, Logo