Japanese government bond prices dipped on Friday following a move by major central banks to offer dollar liquidity to financial institutions and as Japanese investors took profits ahead of their book-closings later this month. Still, with the dollar injections proposed by central banks seen as insufficient to pull the eurozone out of its predicament on their own, many investors expect the market to be underpinned by lingering worries of a global slowdown.
Market players said trading was getting light ahead of September 30, when many Japanese investors close their books for the half-year. The 10-year cash JGB yield rose 1.5 basis point to 1.005 percent and was up 0.5 basis point. The 20-year JGB yield also climbed 1 basis point to 1.745 percent.
The 10-year yield has fallen 12.5 basis points while the 20-year has dropped 14 basis points, compared with declines of 8.5 basis points in the 30-year yield and 7.5 points in the five-year yield. Benchmark JGB futures dropped 0.18 point to 142.52 but stayed above key support at 142.50 from the kijun line on their daily Ichimoku chart.
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