JGBs sit tight on BOJ rate concerns, auction eyed

(Reuters) - Japan's jobless rate fell to a new nine-year low of 3.7
percent in June, beating economists' median forecast for 3.8
percent and suggesting that solid demand in the job market will
eventually push up prices as expected by the BOJ.




Swap contracts on the overnight call rate
showed a nearly 60 percent chance of a BOJ rate hike in
August, up from around 50 percent the previous day.


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JGBs sit tight on BOJ rate concerns, aution eyed

(Reuters) - A slide in U.S. Treasuries also discouraged investors from
picking up JGBs. On Monday, a rebound on Wall Street prompted
bond investors to sell Treasuries and take back some gains from a
bond rally last week.




"Market participants think it is getting easier for the BOJ
to hike interest rates as U.S. markets have started to
stabilise," said Tatsuo Ichikawa, chief JGB strategist at ABN
Amro.


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JGB futures fall from 2-month high on BOJ jitters

(Reuters) - JGBs quickly gave up early gains made on a drop in Tokyo
share prices as investors were concerned that bond yields have
fallen too far if the BOJ decides to lift the overnight call rate
to a 12-year high of 0.75 percent in August from the current 0.5
percent.




A slump in Japanese stock and credit markets in the past week
and a plunge in global equity markets have stirred doubts about a
BOJ interest rate increase next month, driving benchmark JGB
yields to two-month lows.


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JGB futures fall from 2-mth high on rate jitters

(Reuters) - The Nikkei share average was down 1.1 percent by late
morning.




A slump in Tokyo share prices in the past week along with a
plunge in global equity markets has stirred doubts about a BOJ
interest rate increase next month, driving benchmark JGB yields
to two-month lows.


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JGB futures hit 7-wk high on US credit market woes

(Reuters) - "The market's focus is not on the BOJ but U.S. credit market
developments," said Kenro Kawano, a JGB strategist at Credit
Suisse. "I think the market should be very firm and rise
further."




Kawano said the widening of corporate bond spreads abroad was
also starting to spark a bit of weakness in Japanese credit
markets.


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JGBs hit 3-wk trough on weak overseas bond markets

(Reuters) - The BOJ will likely hold rates steady next week, but many in
the market expect a rate hike in August, with the global monetary
tightening trend lending support, traders said.




Traders said they were focusing on whether the BOJ board's
policy vote is unanimous or split.


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JGB futures edge up but BOJ rate concerns cap gains

(Reuters) - Futures recovered from a slide early in the session that had
been prompted by losses in U.S. Treasuries on Thursday. Market
participants said deepening losses in the Nikkei share average
were giving bonds a boost.




JGBs have been finding their footing this week in the
aftermath of a heavy sell-off on concerns about climbing global
bond yields and the growing view that the BOJ will lift rates to
0.75 percent in August, which had driven the futures contract to
a seven-year low.


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Yen Trades Near Four-Year Low Versus Dollar on Bank of Japan Rate Outlook

(Bloomberg) -- The yen traded near the weakest in
more than four years versus the dollar on speculation the Bank of
Japan will refrain from lifting the lowest borrowing costs among
major economies.

Japan's yen dropped yesterday after minutes from the BOJ's
May meeting suggested interest rates will rise ``gradually,''
encouraging investors to borrow the currency and buy higher-
yielding assets elsewhere, in a practice known as the carry
trade. A decline in U.S. stocks on rising bond yields may spill
over into Asian equity markets, helping the yen cap its decline
as risk appetite retreated.


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Yen Is Little Changed Before Speech by Bank of Japan Deputy Governor Muto

(Bloomberg) -- The yen was little changed before
Bank of Japan Deputy Governor Toshiro Muto gives a speech that
may signal how soon the central bank will raise interest rates.

Japan's currency traded near an all-time low against the
euro and a 4 1/2-year low versus the dollar as investors borrow
yen at the lowest rates in the industrialized world to fund
purchases of higher-yielding assets, known as carry trades.
Minutes released today from BOJ meetings in April and May showed
policy makers agreed that rates can be raised gradually.


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Euro sets new high vs yen, kiwi dips on RBNZ sales

(Reuters) - The euro scaled a record peak against the yen on Monday on expectations for the Bank of Japan to raise interest rates only gradually, while the New Zealand dollar retreated on suspected fresh central bank intervention.

The euro extended its gains to hit a record high against the low-yielding yen for the second straight session, getting a boost from Friday's remarks by BOJ Governor Toshihiko Fukui that all but doused fears of a rate rise in July.


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JGBs rebound on short covering, eyes on BOJ

(Reuters) - Another focus of the meeting is whether some members of the
BOJ policy board vote for a rate hike -- a move that would fuel
speculation of an earlier rate increase.




"Market players had oversold JGBs, given that inflation
pressure in the Japanese economy is nil, and now they are buying
them back," said Susumu Kato, chief strategist at Calyon Capital
Markets.


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JGB five-year yield hits all-time high at 1.530 pct

(Reuters) - The BOJ is increasingly expected to lift rates to a 12-year
high of 0.75 percent from 0.50 percent in the coming months.




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