JGBs mostly higher on Japan output data

Japanese government bond prices were mostly higher on Thursday, with some yields touching one-month lows, as data showed a sharp fall in Japan output and after the Federal Reserve pledged to hold short-term interest rates near zero. Japanese industrial output fell a record 15.3 percent in March, more than economists' forecast for an 11.0 percent drop, prompting investors to buy more JGBs.
The yield on the 10-year cash bonds marked a one-month low of 1.200 percent, falling 1 basis point from the previous day. Benchmark June 10-year JGB futures prices rose 0.11 point to 140.05, after hitting a one-month peak of 140.08. JGB futures extended gains with the rise helped by buying from commodity trading advisors (CTAs), market players said. Also, big Japanese banks were seen selling cash bonds and buying futures. The yield curve steepened with the superlong sector - maturities such as 20- and 30-years - underperforming the rest of the market. The yield on the 20-year bond rose 2.0 basis points to 2.045 percent.