TOKYO: Japanese government bond prices slipped on Monday on the first day of Japan's new financial year, as investors took profits amid cautious optimism over the global economy after better-than-expected Chinese factory data.
June 10-year JGB futures fell 0.30 point to 141.71 while the yield on the 10-year cash bonds rose 2.0 basis point to 1.005 percent.
China's big factories were surprisingly busy in March as a stream of new orders lifted activity to an 11-month high, easing worries that the Chinese economy is heading for a sharper slowdown than policymakers would have wanted.
Japanese and Asian shares kept their momentum, with the Nikkei average rising about 1.0 percent to edge near a one-year high hit last week.
10-year bonds were coming under pressure ahead of a 10-year JGB auction on Tuesday. As Japan's borrowing needs continue to rise, the offer of 10-year bonds will be raised to 2.3 trillion yen per month from 2.2 trillion yen currently.
The market showed scant response to the Bank of Japan's tankan corporate sentiment survey, which showed the business mood among big Japanese manufacturers stood flat despite expectations of a small improvement.
Comments
Comments are closed for this article.