Traders said, some people in the markets seem to be afraid that the bank of Japan may not live up to a two-day policy meeting on Tuesday, the end result, is likely to hurt share prices and low return bonds benefit from special big market expectations.
"The price action view, this seems to be the bond market bets on the stock market will have some down tomorrow, said:" Japan brokers bond traders.
Ten-year Treasury futures contract up 0.16 points to 144.41 points, in Thursday's plate high 144.50, this is December 13, the highest level since.
In cash bond market, a relatively short period of time, such as the longest 30 years national debt, beat together, on the move along the swaps (CDS) market, some of the players from the steep inclined bet profits.
Because of thirty swap rate plummets, 30 years bond yields fell by 3.0 percentage points to 1.970%, and the ten-year Treasury yields only fell by 1.5 percentage points to 0.735%.
Japan's nikkei average share price. The nikkei fell more than 1.5% on Monday, the profit taking before, the bank of Japan decision. Last Friday, has reached 32 months after high in recent years, the biggest one-day increase.
Investors expected the bank of Japan set 2% inflation target, and increase its asset purchase plan, make a member of any number of their promises. Some people think that the bank of Japan may reduce the excess deposit reserve rate or enlarge its asset purchase goal.
"The market has been partially reflected in the opportunity to cut interest rates. Therefore, if the central bank does not, short-term bonds may stumble once, said:" in and Securities (Daiwa Securities) chief fixed income strategists and yamamoto.
The two-year Japanese bond yields 0.070%, played seven and a half years in the low growth prospects, last Friday, the bank of Japan may cut or cancel the 0.10% of the excess deposit reserve pay interest. On Monday the two-year bonds, no deal.
However, yamamoto said, the loss will be limited, because the market think the bank will take such a step, a new governor, to replace the current chief governor BaiChuan FangMing (Masaaki Shirakawa), the end of his term in April.
In addition, the ministry of finance will be in Tuesday's regular meetings, the main JGB dealers.
"I think the main theme should be" and the formation of the fiscal budget and the Japanese government bonds issuance schedule, Naomi said: "six car, mitsubishi UFJ Morgan Stanley securities senior analyst." Time is no relationship of the Japanese central bank meeting, this is the government last week in the end of the fiscal year is mostly the blueprint of '13 budget. "



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