JGBs higher on buy backs

JGBs higher on buy backs

TOKYO (Reuters): Key June 10-year Japanese government bond futures were higher by midday yesterday on short-covering by dealers and concern about weak economic fundamentals.

"Dealers who took short positions on Friday ahead of Prime Minister Ryutaro Hashimoto's visit to Indonesia were buying back," said a trader for a domestic brokerage house.

There had been some concern that Hashimoto, or Taku Yamasaki, policy chief of the ruling Liberal Democratic Party (LDP) who accompanied him, would comment on further measures to stimulate the Japanese economy in Indonesia over the weekend.

June stood at 130.89 by midday, up from Friday's close of 130.48. Turnover was a light 16,009 lots.

Key 182nd 10-year JGB yield stood at 1.50 percent as of 0240 GMT, down from Friday's close of 1.535 percent.