July 31, 2019 / 4:16 AM / 4 months ago

JGBs edge higher as prospect of global monetary easing mounts

TOKYO, July 31 (Reuters) - Japanese government bond prices edged higher on Wednesday, supported by the prospect of major central banks embarking on a monetary policy easing cycle with the U.S. Federal Reserve at the lead.

The Fed is widely expected to lower interest rates for the first time since 2008, when policymakers conclude their two-day policy meeting later on Wednesday.

The European Central Bank is expected to follow in the Fed’s footsteps in the near future, boosting expectations that the Bank of Japan would eventually ease policy as well.

The benchmark 10-year JGB yield dipped half a basis point to minus 0.160%. The 30-year yield declined 1 basis point to 0.350%.

A regular debt-buying operation conducted by the BOJ on Wednesday also supported JGBs.

The central bank offered to buy 1.24 trillion yen ($11.42 billion) of one- to 10-year JGBs at the operation. ($1 = 108.5600 yen) (Reporting by the Tokyo markets team; Editing by Shounak Dasgupta)

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