TOKYO: Japanese government bond prices slipped on Thursday after Bank of Japan Deputy Governor Hiroshi Nakaso fanned expectations the BOJ may modify its massive stimulus in a policy review planned later this month.
The 10-year JGB yield rose 2.0 basis points to minus 0.040 percent, jumping back from one-week low of 0.070 percent touched earlier in the session.
Nakaso largely followed the line similar to speech by BOJ Governor Haruhiko Kuroda earlier this week, acknowledging that the central bank's policy is affecting the bottom line of financial institutions.
But he also said the central bank would not rule out deepening negative interest rates or any other easing steps needed to achieve its 2 percent inflation target.
"The market seems to be reacting on Nakaso's comments, as he talked about possible need to rejig its policy," said Keiko Onogi, senior strategist at Daiwa Securities.
"But he has hardly cleared uncertainty over what the BOJ will do at its next policy meeting," she added.
The market has been in a downtrend since August on suspicions that the BOJ may seek to steepen the yield curve to help financial institutions which are suffering from negative rates.
The 30-year JGB yield rose 3.0 basis points to 0.445 percent , while the 20-year JGB yield rose 3.5 basis points to 0.390 percent.
Shorter maturities fared better with the five-year yield rising 1.0 basis points to minus 0.165 percent.
10-year JGB futures price fell 0.17 point to 151.32 .
Comments
Comments are closed for this article.