TOKYO, Feb 22 (Reuters) - Japanese government bond futures inched lower on Monday as a surge in the Nikkei stock average dulled the appeal of safe-haven debt.
* JGB losses were limited as the market drew some relief after U.S. Treasuries gained on Friday, rebounding from earlier losses in the wake of the Federal Reserve's surprise hike in its emergency lending rate on Thursday.
* Market players expected longer-dated JGBs to be supported by index-following investors extending durations of their bond portfolios towards the month's end.
* Such expectations helped the 20-year yield remain steady at 2.170 percent ahead of Tuesday's 1.1 trillion yen ($12 billion) auction of the maturity.
* March 10-year JGB futures slipped 0.05 point to 139.43, pulling further away from a seven-week high of 139.76 struck the previous week.
* The benchmark 10-year yield edged up 1 basis point to 1.340 percent.
* The Nikkei rose 2.7 percent with exporters buoyed by Wall Street gains after investors took the Fed's discount rate hike as a sign the financial system is healing.
(Reporting by Shinichi Saoshiro; Editing by Chris Gallagher)
((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging: shinichi.saoshiro.reuters.com@reuters.net; +81-3-6441-1774)) 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 2010. 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.
* JGB losses were limited as the market drew some relief after U.S. Treasuries gained on Friday, rebounding from earlier losses in the wake of the Federal Reserve's surprise hike in its emergency lending rate on Thursday.
* Market players expected longer-dated JGBs to be supported by index-following investors extending durations of their bond portfolios towards the month's end.
* Such expectations helped the 20-year yield remain steady at 2.170 percent ahead of Tuesday's 1.1 trillion yen ($12 billion) auction of the maturity.
* March 10-year JGB futures slipped 0.05 point to 139.43, pulling further away from a seven-week high of 139.76 struck the previous week.
* The benchmark 10-year yield edged up 1 basis point to 1.340 percent.
* The Nikkei rose 2.7 percent with exporters buoyed by Wall Street gains after investors took the Fed's discount rate hike as a sign the financial system is healing.
(Reporting by Shinichi Saoshiro; Editing by Chris Gallagher)
((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging: shinichi.saoshiro.reuters.com@reuters.net; +81-3-6441-1774)) 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 2010. 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.