January 13, 2017 / 6:20 AM / a year ago

JGBs mixed, steepening in yield curve reversed

TOKYO, Jan 13 (Reuters) - Long-dated Japanese government bond yields edged down slightly while shorter yields rose marginally on Friday, as a few players took profits from their bets that the yield curve will be steepening.

On the whole, trade is slow as many market players look for new catalysts after the U.S. President-elect Donald Trump’s news conference earlier this week provided little information on his economic policies.

The 30-year JGB yield dipped 0.5 basis point to 0.730 percent, falling further from a near one-month high of 0.770 percent hit earlier in the week.

The 20-year yield fell 0.5 basis point to 0.590 percent .

In contrast, the 10-year JGB yield rose 1.0 basis point to 0.050 percent, while the two-year yield rose 0.5 basis point to minus 0.220 percent.

The spread between two-year and 30-year yields shrank to 95 basis points from 102 basis points touched earlier this week as some traders unwound bets that the curve will steepen.

Some players had bet that the curve will steepen on the view that the Bank of Japan will keep a tight grip on bond yields of up to 10 years but tolerate rises in longer yields.

The 10-year JGB futures price dropped 0.06 point to 150.26.

Reporting by Tokyo Markets Team; Editing by Sherry Jacob-Phillips

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