Japanese govt bonds close mixed as investors digest economic data, oil prices
Wednesday, March 9, 2005 6:48:04 AM
forexstreet.com
TOKYO (AFX) - Japanese government bond prices closed mixed, with investors digesting mixed signals about prospects for the economy, dealers said
"Sentiment in the bond market is not that strong on the back of recent indicators that suggest the economy will recover soon, combined with the uptrend at the stock market. Nevertheless some investors are worried that higher oil prices have the potential to hurt the economy," Yoshikiyo Shimamine, chief economist at Dai-ichi Life Research Institute, said
"Some investors are also seen waiting on the sidelines for machinery orders data due out tomorrow," Shimamine added
The yield on the bellwether 10-year JGB, which carries a 1.3 pct coupon, ended at 1.490, down from 1.495 pct at yesterday's close. It moved between 1.490-1.510 pct. The lead 20-year bond was yielding 2.075 pct, up from 2.070 pct yesterday
The benchmark five-year note was yielding 0.630 pct, up from 0.625 pct
Bond prices move inversely to yields
The 10-year bond futures contract for March delivery ended at 138.19 yen, up from 138.14 yen at the close yesterday
During afternoon trade, the Cabinet Office's preliminary data showed that Japan's index of leading economic indicators stood at 55.0 for January, topping the boom-or-bust line for the first time in five months
A reading above 50 indicates economic expansion over the next three to six months, while a reading below 50 suggests a contraction. On the back of the data that points towards improved economic conditions, Mizuho Corporate Bank -- one of three banking units of Mizuho Financial Group Inc, the largest lender in the country -- said it will raise its long-term prime lending rate by 0.1 percentage points to 1.65 pct from tomorrow, the first rise since June last year |
