TOKYO: Japanese government bond futures slipped on Wednesday as players took profits after rises in U.S Treasury yields and Tokyo stocks.
* June 10-year Japanese government bond futures were down 0.17 point at 139.61 after dropping to 139.52, the lowest since Wednesday last week.
* Trade in cash bonds remained subdued as players were reluctant to shift positions before US jobs data on Friday and a 10-year JGB auction next Tuesday, said Katsutoshi Inadome, a fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities.
* The benchmark 10-year JGB yield rose 2.0 basis points to 1.245 percent.
* Superlongs have been under pressure due to worries that Japan may have to issue more debt to pay for rebuilding after the massive earthquake and tsunami that struck on March 11.
* The 20-year bond yield rose 1.0 basis point to 2.045 percent, while the 30-year bond yield rose 1.0 basis point to 2.190 percent.
* The Nikkei newspaper reported on Wednesday that the government is likely to compile a first emergency budget of 2 trillion yen ($24 billion) for disaster relief and will aim to submit it to parliament in April.
* The reported size of the emergency budget was within market expectations and thus didn't have much impact on JGBs on Wednesday. However, Mitsubishi UFJ's Inadome cautioned that the government will need to reallocate spending towards reconstruction to avoid having to issue more debt.
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