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JGBs edge down in typhoon-thinned trading
August 22, 2016 / 7:36 AM / in a year

JGBs edge down in typhoon-thinned trading

TOKYO, Aug 22 (Reuters) - Japanese government bonds edged down on Monday, in thin trading as investors in weather-battered Tokyo awaited a U.S. Federal Reserve gathering later this week for directional clues.

Global central bankers will join the annual mountain retreat that opens on Thursday in Jackson Hole, Wyoming. Fed Chair Janet Yellen’s scheduled speech on Friday could contain the latest signal about the timing of an interest rate hike by the U.S. central bank.

U.S. Treasuries slipped on Friday, and Japan’s Nikkei stock index ended up 0.3 percent on Monday, which put mild pressure on JGBs.

Volume was thin as Typhoon Mindulle swept over Japan’s capital, causing flooding and interrupting some train services.

The benchmark 10-year JGB yield added 2 basis points to minus 0.070 percent, while September 10-year futures ended down 0.14 point at 151.31.

The yield curve steepened slightly, with the 20-year JGB yield and the 30-year JGB yield both adding 2.5 basis points to 0.290 percent and 0.350 percent respectively.

The JGB market largely shrugged off weekend comments from Bank of Japan Governor Haruhiko Kuroda, who said in an interview with the daily Sankei newspaper that he would not rule out deepening a cut to negative rates it introduced in February

The BOJ’s negative rate policy has not reached its limits, Kuroda was quoted as saying. (Reporting by Tokyo markets team; Editing by Richard Borsuk)

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