November 1, 2019 / 6:13 AM / 17 days ago

JGBs gain across maturities on BOJ disappointment, in line with U.S. Treasuries

TOKYO, Nov 1 (Reuters) - Japanese government bond (JGB) prices rose on Friday, tracking firmer U.S. Treasuries, with longer-dated bonds gaining sharply as the Bank of Japan (BOJ) did not hint on any concrete measures to steepen the yield curve at its policy meeting.

Benchmark 10-year JGB futures rose 0.45 point to 154.40, with a trading volume of 30,632 lots.

The 10-year cash JGB yield fell 4 basis points to minus 0.185%.

In the super-long zone, the 20-year yield 3.5 basis points to 0.190%, while the 30-year and the 40-year yields fell 4.5 basis points each to 0.340% and 0.375%, respectively.

Meanwhile, the two-year JGB yield fell 3.5 basis points to minus 0.275% and the five-year yield fell 4.5 basis points to minus 0.310%.

The BOJ kept monetary policy steady on Thursday as expected but gave the strongest signal to date that it may cut interest rates in the near future.

Regarding excessive declines in super-long JGB yields, Governor Haruhiko Kuroda said “if the yield curve flattens too much, we can tweak our market operations” such as further slowing the BOJ’s purchases of super-long bonds. (Reporting by the Tokyo markets team; Editing by Rashmi Aich)

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