JGBs steady before holiday, BOJ offers to buy 800 bln yen of bonds
TOKYO, Sept 13 (IFR) - Japanese government bonds ended the morning session on Friday mostly unchanged, with cash activity limited to transactions among dealers, except for JGB buying operations by the Bank of Japan in the secondary market.
Trade was thin ahead of a long weeekend. Japan's financial markets will be closed on Monday for a national holiday.
JGB yields moved in very narrow ranges of 0.5 basis point or less, while futures fluctuated in a range of 143.53 to 143.63 before ending the morning session down 0.03 point at 143.57.
As widely expected, the BOJ offered to buy 800 billion yen of JGBs under its massive JGB buying program in 3 tranches: 250 billion yen in the 1-year to 3-year zone; 350 billion yen in the 3-year to 5-year zone; and 200 billion yen in the 10-year and longer zone.
The BOJ purchased JGBs in the same zones one day after a monthly 5-year JGB auction in July and August.
The settlement date was Sept. 20, the date for the massive quarterly redemption of JGBs.
The yield on the new 5-year notes (issue number 114 with a coupon of 0.3 percent, due Sept 2018) traded at 0.265 percent in the morning AM session, compared with the 0.263 percent average accepted yield in Thursday's auction.
The 10-year yield rose 0.5 basis point to 0.725 percent.
In the super-long zone, the 20-year yield was up 0.5 basis point at 1.655 percent, while the 30-year yield was flat at 1.795 percent.