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Benchmark JGBs steady, superlong zone edges down on higher US yields
March 8, 2017 / 4:08 AM / 8 months ago

Benchmark JGBs steady, superlong zone edges down on higher US yields

TOKYO, March 8 (Reuters) - Benchmark Japanese government bonds were steady on Wednesday, though the superlong zone continued to edge down as it took its cues from rising U.S. Treasury yields.

In its asset buying operations on Wednesday, the Bank of Japan bought amounts in line with the previous ones in each zone. This included 450 billion yen ($3.96 billion) of JGBs maturing in five to 10 years, 200 billion yen of JGBs maturing in 10 to 25 years, and 100 billion yen of ones maturing in over 25 years.

The BOJ, which previously did not announce a bond-buying schedule for a coming month, last week released one for March. That removed one source of investors’ uncertainty, though market participants do not know exactly how much the central bank will buy within its amount ranges.

The benchmark 10-year JGB yield was flat on the day at 0.065 percent, while 10-year JGB futures were up 0.02 point at 150.72 in afternoon trading.

The yield on 20-year JGBs rose 0.5 basis point (bp) to 0.655 percent, and the 30-year JGB yield added 1.5 bps to 0.855 percent.

On Tuesday, the U.S 30-year Treasury yield rose to its highest level in over a month as skittishness that the Federal Reserve will raise interest rates next week led to a lacklustre sale of $24 billion of three-year government notes.

The JGB market largely shrugged off economic data released on Wednesday that showed Japan’s economy grew more than earlier estimated in the fourth quarter as capital expenditure grew at its fastest in almost three years. ($1 = 113.6800 yen) (Reporting by Tokyo markets team; Editing by Richard Borsuk)

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