10-Year JGBs rise as Tokyo share markets drop
TOKYO (Dow Jones) -- Key 10-year Japanese government bonds fell Monday, as sellers took a cue from weakness in Tokyo stock markets in an otherwise quiet session amid the nation's Golden Week holiday season.
The 10-year benchmark JGB yield was down half a basis point at 0.615% at 0600 GMT. Lead JGB futures ended up 0.11 at 144.97.
"The bond market was on a solid footing, as weak share prices helped fuel a reversal" in the 10-year JGB yield, which posted relatively sharp gains last week, said Teruyoshi Sotome, a senior bond strategist at Mizuho Securities.
The Nikkei Stock Average index closed down 0.98% at 14288.23, as weakness in U.S. share markets late last week unnerved investors.
The 30-year JGB yield rose slightly to 1.700%.
But the bond market was largely subdued as Japan enters a holiday season and as investors are content to await a series of potentially market moving events later this week, including policy meetings of the U.S. and Japanese central banks, dealers said. Attention is also turning to the euro zone's consumer price data for April, due for release Wednesday, which if weak could add to pressure on the European Central Bank to act.