TOKYO, April 20 (Reuters) - Japanese government bonds dipped on Tuesday, stalling after the previous day's rally as the market tried to assess the potential impact of a suit against Goldman Sachs on investor appetite for riskier assets in the longer term.
* JGBs were pressured as Tokyo's Nikkei stock average gained 0.5 percent after sinking to a three-week low the previous day, as optimism about corporate earnings grew and worries about the Goldman case eased slightly.
* June 10-year futures fell 0.11 point to 139.18 after hitting a one-month high of 139.36 the previous day. The 10-year yield rose 1.5 basis points to 1.325 percent after touching a one-month low of 1.305 percent the previous day.
* JGBs had rallied on Monday as fraud charges against Goldman the previous week triggered a rally in U.S. Treasuries, a surge in the yen to a one-month high against the dollar and a drop in Tokyo stocks to a three-week low.
* Participants were wary of driving JGB prices further up, wanting to gauge whether the recent pullback in investor appetite for risker assets such as equities and commodities in the wake of the Goldman suit would be temporary or longer lasting.
* Charges against the U.S. bank, coupled with concerns over the economic impact of disruption in commerce due to the cloud of Icelandic volcanic ash, had caused a wave of risk aversion across financial markets.
(Reporting by Shinichi Saoshiro; Editing by Hugh Lawson)
((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.
* JGBs were pressured as Tokyo's Nikkei stock average gained 0.5 percent after sinking to a three-week low the previous day, as optimism about corporate earnings grew and worries about the Goldman case eased slightly.
* June 10-year futures fell 0.11 point to 139.18 after hitting a one-month high of 139.36 the previous day. The 10-year yield rose 1.5 basis points to 1.325 percent after touching a one-month low of 1.305 percent the previous day.
* JGBs had rallied on Monday as fraud charges against Goldman the previous week triggered a rally in U.S. Treasuries, a surge in the yen to a one-month high against the dollar and a drop in Tokyo stocks to a three-week low.
* Participants were wary of driving JGB prices further up, wanting to gauge whether the recent pullback in investor appetite for risker assets such as equities and commodities in the wake of the Goldman suit would be temporary or longer lasting.
* Charges against the U.S. bank, coupled with concerns over the economic impact of disruption in commerce due to the cloud of Icelandic volcanic ash, had caused a wave of risk aversion across financial markets.
(Reporting by Shinichi Saoshiro; Editing by Hugh Lawson)
((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.