JGBs dip slightly on caution ahead of auctions, Fed meeting

TOKYO: Japanese government bond prices dipped slightly on Monday, though most investors stayed on the sidelines ahead of upcoming auctions and the U.S. Federal Reserve's policy meeting later in the week.

The 10-year JGB futures fell 0.05 point in price to 150.91 , while the 10-year cash bond yield rose 0.5 basis point to 0.050 percent.

Market players said the main focus for the week is an auction of 2.2 trillion yen five-year JGBs on Tuesday and 1.0 trillion yen 20-year JGBs on Thursday, as well as the Fed's two-day policy meeting ending on Wednesday.

U.S. payrolls data published on Friday showed a robust employment growth but the rise in wages fell short of market expectations.

All in all, they did little to change the perception that U.S. inflation will remain contained even as the job market tightens, allowing the Fed not to hurry in raising interest rates.

The 20-year JGB yield rose 0.5 basis point to 0.570 percent  , while the 30-year yield gained 0.5 basis point to 0.820 percent.