TOKYO, Feb 1 (Reuters) - Japanese government bond futures hovered on Monday near a one-month high hit last week, as investors took to the sidelines before a sale of benchmark 10-year bonds the following day.
* The Ministry of Finance will offer 2.2 trillion yen ($24.4 billion) of 10-year JGBs on Tuesday. The auction is seen as an important test of demand, as the 10-year yield has slipped but managed to hold above 1.3 percent many times in the last month.
* Investors are likely to resume bond buying if Tuesday's debt sale draws solid demand, analysts said. Some players still need to increase their JGB holdings before the fiscal year ends in March, and as uncertainty is growing over the strength of the Tokyo stock market.
* March futures were down 0.05 point at 139.46, but trapped in a relatively tight range. The lead futures contract on Friday rose as high as 139.71, its highest since the end of December.
* The benchmark 10-year yield rose 1 basis point to 1.325 percent JP10YTN=JBTC> as some investors sold bonds to make room in their portfolios before Tuesday's auction.
* Tokyo's Nikkei stock average was little changed. It hit a six-week closing low on Friday.
(Reporting by Rika Otsuka)
((rika.otsuka@thomsonreuters.com; +81-3-6441-1874; Reuters Messaging: rika.otsuka.reuters.com@reuters.net)) ($1=90.23 Yen) 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.
* The Ministry of Finance will offer 2.2 trillion yen ($24.4 billion) of 10-year JGBs on Tuesday. The auction is seen as an important test of demand, as the 10-year yield has slipped but managed to hold above 1.3 percent many times in the last month.
* Investors are likely to resume bond buying if Tuesday's debt sale draws solid demand, analysts said. Some players still need to increase their JGB holdings before the fiscal year ends in March, and as uncertainty is growing over the strength of the Tokyo stock market.
* March futures were down 0.05 point at 139.46, but trapped in a relatively tight range. The lead futures contract on Friday rose as high as 139.71, its highest since the end of December.
* The benchmark 10-year yield rose 1 basis point to 1.325 percent JP10YTN=JBTC> as some investors sold bonds to make room in their portfolios before Tuesday's auction.
* Tokyo's Nikkei stock average was little changed. It hit a six-week closing low on Friday.
(Reporting by Rika Otsuka)
((rika.otsuka@thomsonreuters.com; +81-3-6441-1874; Reuters Messaging: rika.otsuka.reuters.com@reuters.net)) ($1=90.23 Yen) 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.