September 27, 2019 / 4:52 AM / a month ago

Short-term JGB yields hold steady as traders await BOJ bond purchases

TOKYO, Sept 27 (Reuters) - Short-dated Japanese government bond yields held steady on Friday as investors waited for a Bank of Japan decision on bond purchases that could show how far the central bank will go to push short-term yields lower.

Expectations are growing that the BOJ will ease monetary policy by bringing down short- and medium-term yields in response to slowing inflation and risks posed by global trade friction.

Traders also expect the central bank to steepen the yield curve by allowing super long-term yields to rise further.

Benchmark 10-year JGB futures rose 0.1 point to 155.33, with a trading volume of 9,621 lots.

The 10-year JGB yield was flat at minus 0.250%.

At the short end of the curve, the two-year JGB yield was flat at minus 0.330%.

In the middle of the curve, the five-year yield was flat at minus 0.370%.

The 20-year JGB yield fell 1.5 bps to 0.155%.

The 30-year JGB yield fell 3 bps to 0.305%, while the 40-year JGB yield declined 3 bps to 0.370%.

Traders will closely watch a regular announcement from the BOJ on Sept. 30 to see if policymakers increase debt purchases.

The BOJ uses negative interest rates and massive bond purchases to keep monetary policy accommodative. Its next policy meeting ends on Oct. 31. (Reporting by the Tokyo Markets Team; Editing by Subhranshu Sahu)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below