JGBs rise as Treasuries climb, Nikkei erases gains

(Reuters) - Bond investors watched movements in the Tokyo stock market
closely this week as they believe the Bank of Japan will take
recent volatility in equities into account when it decides
whether to raise interest rates at its Aug. 22-23 policy meeting.




"The JGB market will stay under the strong influence of
external factors as the BOJ is unlikely to lift interest rates
before investor risk aversion ends," said Naomi Hasegawa, a
senior fixed-income strategist at Mitsubishi UFJ Securities.


Read more at Reuters.com Bonds News

FACTBOX: Schedule of data, events on BOJ rate outlook

(Reuters) - Following is a schedule for key economic indicators and events that may affect the outlook of the BOJ's future policy moves.




JULY 26: BOJ board member Tadao Noda to visit Nara, western


Read more at Reuters.com Hot Stocks News

JGBs down, hit by weak Treasuries, 10-year sale

(Reuters) - Traders said they were looking at the U.S. bond market for
direction as JGB prices were expected to move in narrow ranges
ahead of next week's policy meeting by the Bank of Japan, having
digested key data, the auction and speeches by BOJ officials.




"Sluggish demand for the new 10-year issue has weighed on
sentiment, at least in that sector, as the paper is seen as
expensive relative to other maturities," said Kenro Kawano, a
fixed income strategist at Credit Suisse.
The 10-year JGB sale on Tuesday drew lower-than-expected
demand from dealers despite a 1.9 percent coupon, which was the
highest since August, because dealers had wanted a re-opening of
the No. 286 1.8 percent issue to ease their shortage in the repo
market.


Read more at Reuters.com Bonds News

JGBs fall as overseas bond prices drop, aution eyed

(Reuters) - The market now sees the BOJ as most likely to lift rates in
August.




Treasuries fell on Wednesday, ending a three-day rally as
weakness in the European government bond market due to jitters
about rising global interest rates spilled into its U.S.
counterpart.


Read more at Reuters.com Bonds News

Yen Strengthens After Japanese Jobless Rate, Household Spending Reports

(Bloomberg) -- The yen rose for a second day against
the dollar after government reports showed Japan's jobless rate
unexpectedly fell to a nine-year low and households increased
spending for a fourth month in April.

Signs of a strengthening economy may fuel bets the Bank of
Japan will raise the lowest interest rates in the industrialized
world, increasing the appeal of yen-denominated assets. The yen
has fallen against 15 of the 16 most-active currencies in the
past year, as the BOJ signaled it may keep its benchmark rate at
0.5 percent in coming months.


Read more at Bloomberg Currencies News

UPDATE 2-BOJ tankan shows cautious Japan business sentiment

(Reuters) - TOKYO, April 2 - Japanese corporate sentiment worsened for the first time in a year amid growing concerns about the outlook for the U.S. and global economies and uncertainty over future oil price and yen movements, a Bank of Japan survey showed on Monday.

The closely watched March tankan survey did little to change the widespread view that the central bank will be slow in raising interest rates, with many traders expecting the next rate hike to come sometime after upper house elections in July.


Read more at Reuters.com Economic News

BOJ tankan shows cautious Japan business sentiment

(Reuters) - The yen was weaker against the dollar after the data, moving out to around 118.00 yen from around 117.75 just before the tankan's release, while the Nikkei share average opened up 0.34 percent at 17,346.25.

The headline sentiment index for big manufacturers was plus 23, meaning those firms who think business conditions are favorable outnumbered those who think they are negative by 23 percentage points.


Read more at Reuters.com Business News

Yen dips before BOJ rate decision

The yen slipped against the dollar and euro as investors questioned whether a possible interest rate rise by the Bank of Japan on Wednesday would do much to shore up the struggling Japanese currency.

Market players are divided over whether the BOJ will lift rates to a decade-high of 0.5 percent from 0.25 percent, and traders say the yen could move in either direction depending on what the central bank decides.

But even if the BOJ lifts rates, investors increasingly believe the yen will ultimately suffer with rates so much higher at 5.25 percent in the United States and 3.5 percent in the euro zone, and the BOJ is seen likely to take a while before tightening policy further.

Read more at Reuters South Africa