TOKYO: Japanese government bonds slipped on Wednesday, led by longer maturities, after the Bank of Japan said late on Tuesday that it would buy less in some zones under its asset purchase programme.
Longer yields steepened after the central bank said it would trim its buying offers in its purchase operations by 20 billion yen in both the 10- to 25-year zone and the 25- to 40-year zone.
On Wednesday, the BOJ offered to buy 70 billion yen of JGBs maturing within one year, 220 billion yen of JGBs in the 10- to 25-year zone, and 140 billion yen of JGBs maturing in 25- to 40-years.
The benchmark 10-year JGB yield rose half a basis point to minus 0.115 percent.
The yield on the 30-year JGB rose 3 basis points to 0.320 percent after earlier climbing as high as 0.340 percent, while the 40-year JGB yield climbed 4.5 basis points to 0.405 percent after earlier hitting 0.415 percent.
June 10-year futures ended up 0.04 point at 152.07, recovering from a session low of 151.88 as the Nikkei stock index extended losses, before finishing 1.6 percent lower as the yen strengthened.
Later on Wednesday, Japanese Prime Minister Shinzo Abe is expected to announce that the government has decided to delay a scheduled sales tax increase by two-and-a-half years, putting his plans for fiscal reforms on the back burner to avoid derailing the fragile economic recovery.
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