TOKYO, Aug 9 (Reuters) - Japanese government bonds gained on Monday, with the futures rising towards a seven-year peak, after U.S. Treasuries surged on weaker-than-expected U.S. jobs data that stoked expectations of monetary easing by the Federal Reserve.
* Focus was on the Fed's policy meeting on Tuesday and whether the central bank would consider new stimulus measures in the wake of weak jobs data.
* The rise by the yen towards a 15-year high against the dollar following the U.S. jobs data also supported JGBs, with the strong currency seen adding pressure on the Bank of Japan to ease monetary policy.
* September 10-year JGB futures rose 0.28 point to 142.15, climbing towards a seven-year peak of 142.33 struck last week.
* The benchmark 10-year yield fell 3.0 basis points to 1.025 percent, moving closer to a seven-year trough of 0.995 percent touched last week.
* The benchmark 10-year yield fell to a seven-year trough below the 1 percent threshold last week, as a recent run of disappointing U.S. data reinforced concerns the U.S. economic recovery -- and by extension the global economic recovery -- was losing momentum.
* Investment by Japanese banks rich with cash due to increasing deposits and slack lending has also pushed JGB yields lower. The balance of outstanding loans held by Japanese banks fell 1.8 percent in July from a year earlier, for an eighth straight month of declines, BOJ data showed on Monday, underscoring sluggish corporate demand for funds.
* The U.S. Treasury two-year yield struck a record low and the benchmark 10-year note yield fell to a 16-month trough on Friday after data showed U.S. non-farm payrolls fell 131,100 in July against expectations for a 65,000 decrease. Private employment rose a modest 71,000 in July versus expectations of a 90,000 increase.
* The dollar dipped 0.1 percent to 85.45 yen, hovering just above a 15-year low below 85 yen, while Tokyo's Nikkei shed 0.8 percent.
(Reporting by Shinichi Saoshiro; Editing by Edmund Klamann)
((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.
* Focus was on the Fed's policy meeting on Tuesday and whether the central bank would consider new stimulus measures in the wake of weak jobs data.
* The rise by the yen towards a 15-year high against the dollar following the U.S. jobs data also supported JGBs, with the strong currency seen adding pressure on the Bank of Japan to ease monetary policy.
* September 10-year JGB futures rose 0.28 point to 142.15, climbing towards a seven-year peak of 142.33 struck last week.
* The benchmark 10-year yield fell 3.0 basis points to 1.025 percent, moving closer to a seven-year trough of 0.995 percent touched last week.
* The benchmark 10-year yield fell to a seven-year trough below the 1 percent threshold last week, as a recent run of disappointing U.S. data reinforced concerns the U.S. economic recovery -- and by extension the global economic recovery -- was losing momentum.
* Investment by Japanese banks rich with cash due to increasing deposits and slack lending has also pushed JGB yields lower. The balance of outstanding loans held by Japanese banks fell 1.8 percent in July from a year earlier, for an eighth straight month of declines, BOJ data showed on Monday, underscoring sluggish corporate demand for funds.
* The U.S. Treasury two-year yield struck a record low and the benchmark 10-year note yield fell to a 16-month trough on Friday after data showed U.S. non-farm payrolls fell 131,100 in July against expectations for a 65,000 decrease. Private employment rose a modest 71,000 in July versus expectations of a 90,000 increase.
* The dollar dipped 0.1 percent to 85.45 yen, hovering just above a 15-year low below 85 yen, while Tokyo's Nikkei shed 0.8 percent.
(Reporting by Shinichi Saoshiro; Editing by Edmund Klamann)
((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.