May 9, 2014 3:33 pm JST

JGBs tread water amid few trading cue

TOKYO (Dow Jones) --Japanese government bonds were little changed on Friday with few trading cues available.

     Traders said that with the benchmark 10-year JGB yield still hovering near the psychologically-important 0.6% line and with stock and currency markets treading water, investors were hesitant to make any aggressive moves.

     The benchmark 10-year yield was up 0.5 basis point at 0.605% as of 0600 GMT, a time when many investors close their books. The 10-year cash JGB did not trade during the afternoon.

     Lead June JGB futures finished down 0.01 at 145.13.

     Rather than lower expectations for additional easing from the BOJ, "the effect of the U.S. Treasury market being rangebound for a long time a bigger factor" in keeping the JGB market also rangebound, said SMBC Nikko Securities chief rates strategist Chotaro Morita
With new hints about U.S. monetary policy to move U.S. rates, JGB yields should also remain at a standstill for the time being, he says.

     Market participants are looking forward to an auction of 30-year bonds on Tuesday and 5-year bonds on Thursday.

     At 0600 GMT Change
     TFX Dec 3-Month Euroyen Price: 99.800 flat
     TSE Jun 10-Year JGB Futures Price: 145.13 -0.01
     10-Year 0.6% JGB No. 333 Yield: 0.605% +0.005