JGBs surge following earthquake in Japan (Reuters) (11-03-2011)

TOKYO – Japanese government bond futures surged for a while on Friday and advanced again more than a full point, after a massive earthquake hit northern Japan, while trading in cash bonds was suspended after the quake.

Benchmark June 10-year futures ended 0.66 point higher at 139.20 . The contract rose as high as 130.90 at one point, its highest in five weeks while it extended gains to 139.25 in evening trade at the Tokyo Stock Exchange.

The 10-year cash bonds traded at a yield of 1.270 percent just before trading was halted due to the magnitude 8.9 earthquake which cut off phone lines and collapsed buildings in northern Japan.

Before the earthquake, JGBs had been rising following a surge in U.S. bond prices, although activity was slow as many domestic investors were sidelined ahead of the March 31 fiscal year-end.

Source: Reuters