JGBs weaken further on rebound in dollar, stocks

Reuters

TOKYO, Oct 8 (IFR) - JGB prices remained steady to slightlylower on Tuesday, as a rebound in the dollar against the yen andTokyo stocks likely weighed, and upcoming U.S. and Japanesegovernment debt auctions.

The auctions are Wednesday's 10-year U.S. Treasury auctionand Thursday's 30-year JGB auction, taking place amid fears overthe U.S. government shutdown, and Thursday's

Results of a 300 billion yen 10-year inflation-indexed JGBauction were better than expected..

The lowest accepted price came in at 104.65, above the upperend of market expectations that ranged widely from 100.40 to104.10.

The take by anonymous primary dealers, including domesticmegabanks and four foreign investment banks, was very high at68 percent.

One U.S. investment bank appears to have bought 140 billionyen's worth, or 47 percent of the total issue, while one Britishhedge fund is said to have purchased 100 billion yen's worth through primary dealers.

Yields on the current 5-year JGBs are unchanged from Mondayat 0.215 percent, while the 10-year yield was up1.0 basis point at 0.650 percent.

In the super-long zone, the 20-year yield was up 1.0 basispoint at 1.520 percent. JGB futures are down 0.06 point at144.37.

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