TOKYO: Japanese government bond prices inched down on Thursday, with the 10-year yield coming off a three-month low hit in the previous session, ahead of the outcome of the Bank of Japan's policy meeting later in the day.
The 10-year yield was up 2 basis points at 0.770 percent after slipping 3 basis points to its lowest level since May 13 on Wednesday.
The BoJ is expected to maintain its massive monetary stimulus as its board debates whether improving signs from prices and the job market justify offering a rosier view on the economy.
"BoJ Governor (Haruhiko) Kuroda said he did all the things the BoJ has to do in April. Based on this, we do not expect anything to come from the BOJ meeting unless there is a large change in the external environment," said Yuya Yamashita, rate strategist at JPMorgan in Tokyo.
"The external environment has not shown any large changes to impact the BOJ decision. The JGB market has already priced in such an outcome. We expect the JGB market to show limited reaction."
The 10-year JGB futures slipped 0.17 point to 143.85, retreating from a three-month high but held above their five-day moving average of 143.72.
The five-year yield added 1.5 basis points to 0.290 percent. According to International Financing Review, a Thomson Reuters publication, one Japanese megabank sold five-year debt ahead of next Tuesday's auction of 2.7 trillion yen ($28 billion) of the same maturities.
The Ministry of Finance is to sell 500 billion yen of 30-year bonds on Friday. The 30-year yield was steady at 1.825 percent.
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