TOKYO, Dec 10 (Reuters) - March 10-year Japanese government bond futures edged higher on Thursday and the 10-year yield held steady, as investors awaited a five-year note auction later in the day.
* The Ministry of Finance's auction of 2.4 trillion yen in five-year JGBs later on Thursday is expected to attract solid demand, with short- to medium-term JGBs supported by the BOJ's decision last week to adopt a new money market operation to help lower longer-term money market rates.
* The BOJ's decision has added to steepening pressure on the JGB yield curve, with the 5-year/20-year yield spread having touched 157.5 basis points this week, the highest in seven years.
* March 10-year JGB futures are now the de-facto benchmark contract, with its trading volume having exceeding the volume for the December contract.
* March futures rise 0.05 point to 139.85. The December contract edges up 0.06 point to 140.42. Thursday is the last trading date for December JGB futures. The benchmark 10-year JGB yield is steady at 1.235 percent .
* Data on Thursday showed Japan's core machinery orders fell 4.5 percent in October from the previous month, a sign that capital spending remains a drag on an economy although economists said the worst may be over. The fall matched the median market forecast and marked the first decline in three months.
(Reporting by Masayuki Kitano; Editing by Edwina Gibbs) ((masayuki.kitano@thomsonreuters.com; Reuters Messaging: masayuki.kitano.reuters.com@reuters.net; +81-3-6441-1872)) Keywords: MARKETS JAPAN JGB (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* The Ministry of Finance's auction of 2.4 trillion yen in five-year JGBs later on Thursday is expected to attract solid demand, with short- to medium-term JGBs supported by the BOJ's decision last week to adopt a new money market operation to help lower longer-term money market rates.
* The BOJ's decision has added to steepening pressure on the JGB yield curve, with the 5-year/20-year yield spread having touched 157.5 basis points this week, the highest in seven years.
* March 10-year JGB futures are now the de-facto benchmark contract, with its trading volume having exceeding the volume for the December contract.
* March futures rise 0.05 point to 139.85. The December contract edges up 0.06 point to 140.42. Thursday is the last trading date for December JGB futures. The benchmark 10-year JGB yield is steady at 1.235 percent .
* Data on Thursday showed Japan's core machinery orders fell 4.5 percent in October from the previous month, a sign that capital spending remains a drag on an economy although economists said the worst may be over. The fall matched the median market forecast and marked the first decline in three months.
(Reporting by Masayuki Kitano; Editing by Edwina Gibbs) ((masayuki.kitano@thomsonreuters.com; Reuters Messaging: masayuki.kitano.reuters.com@reuters.net; +81-3-6441-1872)) Keywords: MARKETS JAPAN JGB (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.