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Tokyo stocks close up 3 yen, briefly top 66,000 before paring gains in afternoon session
In the bond market on May 27, the benchmark June futures contract rebounded sharply. Robust results from a 40-year government bond auction held the same day supported the Japanese government bond (JGB) market.
The 40-year bond auction (19th issue, 3.8% coupon) achieved a bid-to-cover ratio of 2.70, exceeding the 2.54 recorded in the previous auction on March 24. The results alleviated supply-demand concerns for super-long-term bonds. In the afternoon, short-covering entered the market as the Nikkei Stock Average rapidly lost momentum, causing futures to extend their gains. Bank of Japan (BOJ) Governor Kazuo Ueda delivered remarks at an international conference hosted by the BOJ's Institute for Monetary and Economic Studies. While his comments offered no specific guidance on monetary policy, they prompted an unwinding of short positions built on expectations of a hawkish stance.
The June futures contract closed 0.34 yen higher from the previous trading day at 128.59 yen. The benchmark 10-year JGB yield, the key long-term interest rate, traded 0.035 percentage points lower at 2.685%.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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