JGBs up after previous day’s falling (Reuters) (07-01-2011)

TOKYO - Japanese government bonds were up on Friday leaving back falls of the previous day, though gains were limited as there weren’t large bets ahead of closely watched U.S. jobs data.

March 10-year JGB futures climbed 0.06 point to 139.71 after shedding nearly 0.80 point the previous day.

The yield curve steepened initially as some dealers sold the superlongs ahead of next week's 30-year JGB sale, although it eventually flattened as the offers were absorbed by bids from investors like pension funds, market players said.

The benchmark 10-year yield fell 1.5 basis points to 1.195 percent and the 20-year yield declined 2.5 basis points to 1.940 percent, tightening the 10-year/20-year yield spread by half a basis point to 74.5 basis points.

U.S. nonfarm payrolls increased by 175,000 in December, according to a Reuter’s poll, up from the 140,000 expected before the ADP report was released on Wednesday.

Source: Reuters