By Rika Otsuka
Fri Apr 4, 2008 3:02am EDT,YAHOO
TOKYO, April 4 (Reuters) - Japanese government bond futures climbed on Friday, snapping a five-day losing streak, as investors took cues from a fall in Tokyo stock prices and an overnight rise in long-term U.S. Treasuries.
It was the first rise in the lead futures contract in the new financial year after Japanese investors rushed to lock in profits on JGBs' sharp rally in the past few months.
Gains were limited, however, as many players retreated to the sidelines to await an important U.S. employment report due later in the day for clues on the health of the world's biggest economy and the Federal Reserve's monetary policy path.
"Profit-taking at the start of the new fiscal year has peaked. But many are sitting on their hands as they want to see the U.S. jobs data before taking fresh positions," said a senior trader at a big Japanese bank.
June 10-year futures rose 0.17 point to 139.65 2JGBv1.
The contract hit a five-year high of 141.91 on March 19, up more than 5 points from last year's close, as the global market turmoil prompted investors to seek the safety of government debt.
Futures then started to fall as overseas investors followed by Japanese players took profits ahead of the end of the first quarter on March 31.
Despite the fall in the past two weeks, futures still look expensive and due for more correction, said Katsutoshi Inadome, fixed-income strategist at Mitsubishi UFJ Securities. Continued...
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