JGBs quiet due to US holiday, ahead of 40-year tender
TOKYO (Dow Jones) -- Japanese government bonds were flat Monday as investors remained on the sidelines due to the U.S. market closure for a holiday, as well as ahead of Tuesday's scheduled 40-year JGB auction.
At the market close, lead June JGB futures were down 0.01 at 145.25, while the benchmark 10-year yield was up 0.5 basis point at 0.590%.
Traders don't expect the 40-year tender outcome to be too bad because the amount to be auctioned, Y400 billion, is small.
The market has been quiet for the past month, and there wasn't much buying appetite with yields so low.
Yields across the curve may start to fall further, said DLIBJ Asset Management executive fund manager Nobuto Yamazaki.
"But with the market being in this condition for months, I guess investors will give up and stock up positions from the current level," Mr. Yamazaki said.