Wednesday, 22 May 2013 11:58
Posted by Shoaib-ur-Rehman Siddiqui
TOKYO: Japanese government bonds ended almost flat on Wednesday, erasing early gains on disappointment the Bank of Japan did not act to calm jitters rooted in the bond's market rout over the past six weeks.The 10-year yield stood near a one-year high hit a week ago and the market is seen as vulnerable as the BoJ's massive easing keeps pushing Japanese share prices higher and weakening the yen."Hardly any investors expected the yen's fall and a rally in shares of this magnitude. Everyone got it wrong so far. So some investors are starting to think that Japan's growth could be much higher than they had thought, if this continues," said Tohru Yamamoto, chief fixed income strategist at Daiwa Securities.The yield on the 10-year cash bonds stood unchanged at 0.880 percent, not far from the one-year high of 0.920 percent last Wednesday.Although JGBs had tracked gains in US bonds in early ...