YEN BOND FUTURES CLOSE SHARPLY HIGHER
Yen bond futures prices closed sharply
higher reflecting the steep advance in cash bond prices on
purchases by end-investors and banks' dealing accounts, which
was followed by broker buying, dealers said.
    Key June ended at 110.68 against the 109.93 finish
yesterday after opening at 110.25 and rising to a high of
110.75. September ended at 109.40 against 108.74.
    Short-term rates dropped by one point in response to a
seasonal surplus of some 400 billion yen, money traders said.
City and trust bank dealing acounts actively bought low coupon
cash issues, accelerating the futures rally, dealers said.
    Most currency dealers here believe the dollar will remain
bearish despite the expected Group of Seven meeting in
Washington tomorrow.
    Should the dollar fall further, Japan might have to ease
its credit policy, which would lend support to the market, bond
dealers said.
    The unconditional yen call rate was 3.6250 pct today, up
from 3.6875 yesterday. The two-month commercial bill discount
rate was 3.8750 pct, up from 3.9375. The three-month
certificate of deposit rate, the representative open money
market rate, was 4.14/03, up from 4.18/06 yesterday.
 REUTER
