Gov't bond futures prices turn upward.
The price of the March futures contract for 10-year bonds rose 0.40 point to 132.30, sending the yield down 0.037 percentage point to 2.093%.
In interdealer trading, the yield on the No. 218 10-year, 1.9% bond stood at 1.725%, down 0.035 percentage point from Friday.
Investors sold bonds Friday on expectations that the Bank of Japan's quarterly Tankan survey would show an improvement in business sentiment among corporate executives, brokers said.
The central bank announced earlier Monday that the Tankan's diffusion index for large manufacturers rose to minus 17, compared with minus 22 in the previous survey in September, and to minus 19 from minus 23 for major nonmanufacturers.
Brokers said the improvements in these figures were smaller than expected and the disappointing showing had prompted investors to buy back bonds.
They said bond prices are unlikely to continue to rise as their upside will be capped by fears that further issuance of government bonds to finance the government's economic stimulus measures will hurt the supply-demand situation in the market.
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|Comment:||Gov't bond futures prices turn upward.|
|Publication:||Japan Weekly Monitor|
|Article Type:||Brief Article|
|Date:||Dec 20, 1999|
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