TOKYO, Jan 22 (Reuters) - Japanese government bond prices resumed rising on Thursday as investors picked up bargains after the market dipped in response to the Bank of Japan’s decision to stand pat on monetary policy.
Market activity was subdued as a wait-and-see mood prevailed ahead of the closely-watched European Central Bank meeting later in the day. The ECB is widely expected to unveil a major bond-buying stimulus drive.
The benchmark 10-year JGB yield fell half a basis point to 0.240 percent, edging back towards a record low 0.195 percent struck on Tuesday.
March 10-year JGB futures slipped earlier in the session in response to an overnight retreat by U.S. Treasuries, but recovered 0.14 point to 148.31.
The BOJ on Wednesday refrained from expanding its already massive monetary stimulus, which has helped drive JGB yields to record lows. The central bank did, however, expand a loan programme aimed at boosting lending, and cut its inflation forecast amid slumping oil prices. (Reporting by Shinichi Saoshiro and the Tokyo markets team)