SINGAPORE, July 8: Simex Euroyen and Japanese government bond (JGB) futures gave up some of their recent gains on Tuesday as players cashed in in the absence of fresh leads.

"The overall trend is still bullish but March Euroyen could retrace to 98.90/92," a trader at a US Commission house said.

He said the short end of the curve had slipped as London players sold Japanese bond futures heavily in afternoon trade.

March Euroyen stood at 98.95 at 1115 GMT against its IMM close at 99.00 on volume of 13,005 lots. September JGBs ended at 124.48 against their previous 124.82. Buying interest is expected around 124.41 while 125.50 is seen resisted.

Dealers said the fallout from last week's news that a medium-sized Japanese construction firm had decided to apply for court protection from creditors was helping sustain the market's positive tone as it reduced the likelihood of an imminent interest rate hike.

"People have been selling the JGBs to take profit, putting the Euroyen under pressure. But they would still be looking to buy March Euroyen around 98.92," a Japanese brokerage dealer said.

Eurodollar futures scarcely moved due to a dearth of incentives with no major US economic data expected before the June Producer Price Index on Friday.

"It looks like Greenspan's doing a good job. The economy is growing moderately and they may not do anything (to short-term rates) even at the August FOMC," the trader said, referring to the Federal Reserve's policy-setting meeting.

December Eurodollars ended at 94.055 against an IMM 94.060.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.