TOKYO: Japanese government bonds inched up in light trading on Tuesday, with yields on long-dated cash bonds hovering near one-month lows, supported by adjustments from buy-and-hold investors.
March 10-year JGB futures nudged up 0.07 point to 142.45, hitting the level of their 75-day moving average at 142.46, which has been resistance since late November.
But many market players expect JGBs to stay rangebound as investors are likely finishing up shifting their positions ahead of the New Year holiday.
"Trading is extremely subdued, with JGBs likely to remain steady as there are no major auctions for some time to come. JGBs may be somewhat affected as overseas markets resume, but activity will be subdued at least for today," said Shiji Nomura, chief fixed-income strategist at SMBC Nikko Securities.
The 10-year cash bond yield was down 1 basis point at 0.965 percent, matching a three-week low marked last week.
Superlongs such as 20- and 30-year bonds were also steady, with the 30-year yield slipping 1.5 basis point to 1.905 percent and hitting its lowest since Nov. 24, wit buying based on position adjustments by buy-and-hold investors cited.
"It seems like longer maturities were supported by demand from investors such as pension funds as today is the last trading day in terms of settlement this year," said a trader at a Japanese bank.
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