JGBs rise after solid auction, BOJ view caps gains

(Reuters) - Futures inched up towards a two-month high touched on Monday
as Japanese stocks hovered near a four-month low and dealers
picked up shorter JGB maturities after an auction of two-year
notes attracted solid demand.




"The auction was slightly better
and the Nikkei is still dragging its feet," an analyst at a U.S.
securities house said.


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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 hold near 7-wk high, good auction helps

(Reuters) - JGBs initially slipped as U.S. Treasuries steadied from this
week's gains on the subprime mortgage troubles. But as the Nikkei
share average fell 0.9 percent to a two-month low in late
trade, the market trimmed just about all its losses.




Trade was subdued as market players remained cautious before
Friday's report on consumer prices and Sunday's upper house
election in Japan. Most investors believe the Bank of Japan is
likely to raise interest rates next month.


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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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JGB futures drift up to six-week high as stocks dip

(Reuters) - Bond investors initially sold JGB futures after U.S.
Treasuries retreated overnight from recent rallies that had been
driven by mounting problems in subprime mortgage industry that
prompted a flight to quality.




But the dip in JGBs was shallow as investors were quick to
buy them back when the Nikkei share average slipped into
negative territory to its lowest level in a month.


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JGB futures hit six-week high tracking Treasuries

(Reuters) - September 10-year futures rose as much as 0.29 point to
132.37 , the highest since early June.




Traders said expectations remained for the Bank of Japan to
raise interest rates to a 12-year high of 0.75 percent from the
current 0.5 percent as early as next month, limiting gains in
JGBs.


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JGBs jump as Treasuries extend their rally in Asia

(Reuters) - Treasuries added to the gains they had made on Tuesday, when
Standard & Poor's said it might cut its ratings on $12.1 billion
of subprime mortgage-related debt on expectations of an 8 percent
drop in U.S. home prices and more mortgage defaults.




"It seems like the issue of subprime mortgages is having an
impact globally," said a proprietary trader in JGB futures.


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JGBs fall on Nikkei gains, euro zone bond weakness

(Reuters) - JGBs pulled further away from three-week highs hit earlier
in the week, with investors cautious about buying while 10-year
yields remain near the middle of the 1.85-1.95 percent range
that has held for the last few weeks.




"The market extended losses, probably led by declines in
futures, while domestic investors were seen selling on the
upside," said Takafumi Yamawaki, a fixed income strategist at
Morgan Stanley.


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JGB futures eke out gains on 10-yr auction optimism

(Reuters) - Gains were tempered, however, as expectations for a Bank of
Japan rate rise to 0.75 percent from 0.5 percent as early as
August remain firmly entrenched in the market, analysts said.
JGBs drew some strength from gains in Treasuries on Monday
and extended their gains after the Finance Ministry said it was
offering 10-year bonds with a coupon of 1.9 percent, up from 1.8
percent at the previous 10-year offer.




It was the first time the coupon for a 10-year JGB was set at
1.9 percent since an auction last August.


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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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JGB futures rise on weak data, Treasury rally

(Reuters) - A rally in U.S. Treasuries the previous day also encouraged
investors to buy JGBs.




The business survey index on sentiment at large
Japanese manufacturers in the April-June quarter fell to minus
2.2 from plus 0.1 in the previous quarter, indicating big
manufacturers were less confident about business conditions.


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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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JGBs slump on fall in Treasuries, rising Nikkei

(Reuters) - The 10-year JGB yield hit a seven-month high while futures
prices fell to a fresh nine-month low.




U.S. Treasuries slipped on Thursday as a strong Midwest
business activity report reduced expectations of an interest rate
cut by the year-end, pushing benchmark 10-year yields to their
highest level in nine months.


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