TOKYO: Japanese government bonds were steady on Friday as a majority of JGB players took a wait-and-see stance, mostly shrugging off weaker US Treasuries overnight and resilient Tokyo stocks.
As widely expected, the Bank of Japan offered to buy a total of 670 billion yen ($6.74 billion) of JGBs under its buying program. The central bank offered to purchase 300 billion yen of JGBs in the 1-year to 3-year zone, 350 billion yen in the 3-year to 5-year zone, and 20 billion yen of 10-year inflation-indexed JGBs.
The BOJ's purchases have supported JGBs, though dealers are expected to adjust their positions later in the day ahead of the long weekend in Japan. Financial markets will be closed on Monday for a public holiday.
One regional banker told IFR early Friday that his bank's exposure to long-term and super-long JGBs was zero.
The yield on the current 5-year JGBs was unchanged from Thursday's close at 0.245 percent, while the 10-year yield was also flat at 0.670 percent.
In the super-long zone, the yield on 20-year JGBs was down 1 basis point at 1.585 percent, while the 30-year yield was also down 1 basis point at 1.730 percent
Lead December JGB futures added 0.01 point to 144.04, after fluctuating in a 143.98 to 144.08 range in the morning session before finishing at midday down 0.04 at 143.99.
BOJ Governor Haruhiko Kuroda offered a positive outlook for overseas economies, including the United States, saying on Friday growth would gradually pick up and support Japanese exports.
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