TOKYO: Japanese government bond prices edged lower on Wednesday, tracking Treasuries prices after a Federal Reserve official expressed support for a US interest rate hike in September.
US debt yields rose overnight after Atlanta Federal Reserve President Dennis Lockhart, a voter this year on the Federal Open Market Committee, told the Wall Street Journal that it would take "significant deterioration" in the US economy for him to not support a rate hike in September.
The Bank of Japan's bond-buying operations also underpinned the market.
The BOJ offered to buy 375 billion yen ($3.02 billion) of JGBs in the 1-year to 5-year zone, 425 billion yen of JGBs in the 3-year to 5-year zone, and 400 billion yen of JGBs in the 5-year to 10-year zone.
The BOJ will begin a two-day regular policy meeting on Thursday, at which it is widely expected to maintain its massive stimulus, hoping the economy will rebound from a soft patch in the second quarter. The 10-year JGB futures price ended down 0.11 point at 147.68.
The benchmark 10-year JGB yield added 1 basis point to 0.395 percent.
In the superlong zone, the 30-year yield and the 20-year yield both added 1.5 basis points to 1.410 percent and 1.160 percent, respectively.
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