December 18, 2017 / 6:45 AM / 3 months ago

JGBs marginally firmer as govt seen cutting issuance next year

TOKYO, Dec 18 (Reuters) - Japanese government bond prices were steady-to-marginally firmer on Monday, helped by expectations that the Japanese government is likely to slice its debt issuance next year, slightly more than expected.

The 10-year JGB yield was flat at 0.040 percent , while the 20-year yield was also unchanged at 0.565 percent.

The 40-year yield ticked down 0.5 basis point to 0.955 percent.

The price of 10-year JGB futures rose 0.09 point to 150.98.

Government sources told Reuters late on Friday that Japan is planning to slash the amount of government bond sales to the market by about 7 trillion yen to around 134 trillion yen ($1.2 trillion) in fiscal 2018 from the current year.

That is slightly bigger than a cut of 5-6 trillion yen many had been expecting.

Market players are also wary that the BOJ could reduce its bond buying as much so as not to disrupt the market.

The central bank bought JGBs in three categories based on maturity, one-to-three years, three-to-five years, and five-to-ten years, maintaining the purchase amount from its previous operations. (Reporting by Tokyo Markets Team; Editing by Vyas Mohan)

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