TOKYO: Japanese government bonds edged down on Wednesday as investors cautiously adjusted positions in the remaining days of Japan's fiscal year.
The Bank of Japan offered to buy 400 billion yen of JGBs in the 5-year to 10-year zone, 350 billion yen in the 3-year to 5-year zone, and 300 billion yen in the 1-year to 3-year zone, under its bond-buying scheme.
Japan's new fiscal year will begin on April 1, and the BOJ will announce the size of its April JGB purchases on March 31.
"We expect 1-5 year buying to return to the levels seen at the start of March," strategists at Barclays said in a note. "However, with the BOJ starting to show concern about the decline in market liquidity, it could also opt not to increase its buying."
The benchmark 10-year yield rose 2.5 basis points to 0.330 percent, after earlier refreshing Monday's seven-week low of 0.300 percent.
The superlong zone fared somewhat better with yields on 20-year JGBs and 30-year JGBs both adding just half a basis point to 1.075 percent and 1.270 percent respectively.
June 10-year JGB futures inched down 0.12 point to close at 147.85.
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