TOKYO, Sept 8 Japanese government bond prices
slipped on Thursday after Bank of Japan Deputy Governor Hiroshi
Nakaso fanned expectations the BOJ may modify its massive
stimulus in a policy review planned later this month.
The 10-year JGB yield rose 2.0 basis points to minus 0.040
percent, jumping back from one-week low of 0.070
percent touched earlier in the session.
Nakaso largely followed the line similar to speech by BOJ
Governor Haruhiko Kuroda earlier this week, acknowledging that
the central bank's policy is affecting the bottom line of
But he also said the central bank would not rule out
deepening negative interest rates or any other easing steps
needed to achieve its 2 percent inflation target.
"The market seems to be reacting on Nakaso's comments, as he
talked about possible need to rejig its policy," said Keiko
Onogi, senior strategist at Daiwa Securities.
"But he has hardly cleared uncertainty over what the BOJ
will do at its next policy meeting," she added.
The market has been in a downtrend since August on
suspicions that the BOJ may seek to steepen the yield curve to
help financial institutions which are suffering from negative
The 30-year JGB yield rose 3.0 basis points to 0.445 percent
, while the 20-year JGB yield rose 3.5 basis
points to 0.390 percent.
Shorter maturities fared better with the five-year yield
rising 1.0 basis points to minus 0.165 percent.
10-year JGB futures price fell 0.17 point to 151.32
(Reporting by Tokyo Markets Team; Editing by Kim Coghill)