JGBs edge higher, investors cautious ahead of US jobs data

TOKYO: Benchmark Japanese government bonds edged slightly higher on Thursday in a cautious market as investors awaited monthly U.S. jobs data due on Friday.

The 10-year cash JGB yield inched half a basis point lower to 0.045 percent, while the 10-year JGB futures contract finished up 0.05 point at 150.53.

In the super-long zone, the 20-year JGB yield shed half a basis point to 0.570 percent while the 30-year JGB yield was flat at 0.865 percent.

The Ministry of Finance offered 400 billion yen of 10-year JGBs linked to the consumer price index, with a 0.10 percent coupon. Some 27.2022 percent of bids was accepted at the lowest price of 100.043.

The sale drew bids of 3.1 times the amount offered, slightly down from the previous sale's bid-to-cover ratio of 3.19 times.

Weekly fund flow data showed that foreign investors turned to net buying of Japanese bonds in the week through Sept. 30, purchasing a net 391.1 billion yen worth. The data also showed that Japanese investors were net sellers of foreign bonds.

On Friday, Wall Street economists expect the employment figures to show 90,000 new U.S. jobs for September, down from 156,000 in August, according to a Reuters poll. But a report by payrolls processor ADP on Wednesday showed that U.S. private employers added 135,000 jobs in September, exceeding economists' expectations despite the impact of hurricanes.