TOKYO: The benchmark 10-year Japanese government bond yield hovered near 15-month lows on Wednesday amid a latest flare up in geopolitical worries, but wariness over pushing already expensive debt prices even higher hemmed the market in a tight range.
Tokyo's Nikkei fell 0.9 percent after Wall Street slid overnight in wake of speculation that Russia was gathering its forces on the border with Ukraine.
Still, weaker equities were not enough of a factor to move JGBs, which have been confined to tight ranges as yields have been left with less and less manoeuvring space under the Bank of Japan's very loose monetary policy.
"Some risk aversion took place in the Tokyo markets as expected, but currencies and stocks have not shown a strong enough reaction.
Many bond market players are on the sidelines, wary of pushing debt prices even higher," said a dealer at a domestic securities house.
The 10-year JGB yield stood unchanged at 0.515 percent. A drop below 0.510 percent would take the yield to its lowest since April 2013.
September 10-year JGB futures edged up 0.04 point to 146.10.
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