JGBs gain on short-covering triggered by Bunds, US Treasuries

TOKYO :Japanese government bond prices ended higher on Monday as some dealers covered their short positions after a fall in yields on German Bunds and U.S. Treasuries.

Some domestic institutional investors bought long-term and super-long JGBs sporadically as they rolled over funds from a large number of JGBs that have just matured.

The 10-year cash JGB yield dropped 1.5 basis point to 0.540 percent , while the 20-year yield and the 30-year yield fell 2.5 basis points to 1.385 percent and 1.670 percent respectively.

As widely expected, the BOJ did not offer to buy JGBs on Monday. Market players now expect the BOJ to buy JGBs on Sept 24, Sept 26 and Sept 29.

The 10-year JGB futures contract rose 0.22 point to 145.72.