AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.04 Decreased By ▼ -0.95 (-0.74%)
BOP 6.67 Increased By ▲ 0.07 (1.06%)
CNERGY 4.51 Decreased By ▼ -0.09 (-1.96%)
DCL 8.55 Increased By ▲ 0.07 (0.83%)
DFML 41.44 Decreased By ▼ -0.04 (-0.1%)
DGKC 86.85 Increased By ▲ 0.27 (0.31%)
FCCL 32.28 Increased By ▲ 0.14 (0.44%)
FFBL 64.80 Decreased By ▼ -0.62 (-0.95%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 Decreased By ▼ -0.92 (-0.83%)
HUMNL 14.68 Decreased By ▼ -0.07 (-0.47%)
KEL 5.05 Decreased By ▼ -0.08 (-1.56%)
KOSM 7.46 Increased By ▲ 0.34 (4.78%)
MLCF 41.38 Decreased By ▼ -0.27 (-0.65%)
NBP 60.41 Increased By ▲ 0.32 (0.53%)
OGDC 190.10 Decreased By ▼ -4.59 (-2.36%)
PAEL 27.83 Decreased By ▼ -0.12 (-0.43%)
PIBTL 7.83 Decreased By ▼ -0.17 (-2.13%)
PPL 150.06 Decreased By ▼ -1.11 (-0.73%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 Increased By ▲ 0.07 (0.44%)
SEARL 86.00 Increased By ▲ 7.80 (9.97%)
TELE 7.71 Increased By ▲ 0.32 (4.33%)
TOMCL 35.41 Decreased By ▼ -0.26 (-0.73%)
TPLP 8.12 Increased By ▲ 0.21 (2.65%)
TREET 16.41 Increased By ▲ 0.52 (3.27%)
TRG 53.29 Increased By ▲ 0.53 (1%)
UNITY 26.16 Decreased By ▼ -0.39 (-1.47%)
WTL 1.26 Decreased By ▼ -0.01 (-0.79%)
BR100 9,884 Decreased By -36.4 (-0.37%)
BR30 30,600 Decreased By -151.5 (-0.49%)
KSE100 93,355 Increased By 130.9 (0.14%)
KSE30 28,931 Increased By 46 (0.16%)

Japanese government bonds were little changed on Thursday, with prices trapped between profit taking for the start of Japan's new fiscal half- year and a drop in Tokyo's Nikkei stock average to a two-month closing low. Domestic investors often take profits on financial assets to book early profits at the start of new accounting periods.
"The bond market could not react straight away to weaker equities as some investors have to book profits at the start of the new fiscal year half," said Makoto Yamashita, chief Japan interest rate strategist at Deutsche Securities.
The yield curve steepened as longer-dated maturities sagged more as dealers lightened their books ahead of next week's 10- and 30-year JGB auctions. The five-year/20-year yield spread widened by 2 basis points to 147.5 basis points, its steepest since mid-September. The 10-year/20-year yield spread widened by 1.5 basis points to 77 basis points, the steepest in a month, Reuters data showed.
Bonds were slightly weighed down after the Bank of Japan's closely watched tankan survey showed that corporate sentiment continued to improve in July-September. But the market mostly took in stride the tankan results, which were in line with earlier forecasts.
The tankan's headline index for big manufacturers' sentiment improved to minus 33 from minus 48 in the June survey, after hitting a record low of minus 58 in the March survey. Economists said it remained to be seen if corporate sentiment would continue to improve going forward as stimulus from government spending may wear off and as the yen has appreciated sharply recently.
"The tankan headline figure was just as expected and had a limited impact on JGBs. Going forward, large manufacturers have hardly changed their yen forecasts and this is likely to have a negative impact on the economy," said Koji Ochiai, a senior market economist at Mizuho Investors Securities.
December 10-year JGB futures dipped 0.03 point to 139.31 after moving in a tight 0.14 point range. Traded volume was the lowest since mid-September at little over 13,000 lots. The 20-year yield rose 1.5 basis points to 2.060 percent. The benchmark 10-year yield was unchanged at 1.290 percent.
The five-year yield dipped 0.5 basis point to 0.585 percent, edging toward a four-year low of 0.560 percent hit on September 14. The two-year yield also fell 0.5 basis point, to 0.235 percent. It reached a four-year low of 0.200 percent in mid-September. The market focus was on whether the steepening of the yield curve seen this week would continue in the new fiscal half.

Copyright Reuters, 2009

Comments

Comments are closed.