TOKYO: Japanese government bond yields edged away from record lows hit earlier in the session on Thursday, after the Bank of Japan decided not to expand its massive stimulus programme.
The BOJ held monetary policy steady as expected at the conclusion of its two-day meeting, lifting the yen and sending Tokyo stocks down 2 percent.
The central bank maintained its negative interest rate policy adopted in February, which has pushed yields on most JGBs below zero. Most economists, however, still believe it will ease policy further at its meeting in late July, by ramping up asset purchases or cutting rates deeper into negative territory.
JGB yields hit session lows ahead of the BOJ's decision after Treasury yields dropped in the wake of the U.S. Federal Reserve's move overnight to hold policy steady and cut its economic growth expectations.
The 10-year JGB yield added half a basis point to minus 0.190 percent, after plumbing a record low of minus 0.210 before the BOJ's announcement.
June 10-year futures edged down 0.06 point to end at 152.66.
The 5-year yield added half a basis point to minus 0.290 percent after hitting a record low of minus 0.305 percent earlier.
Prices in the superlong zone held onto some of their early gains though it pared them.
The 20-year yield was down 1.5 basis points at 0.125 percent after touching a record low 0.120 percent earlier, while the 30-year yield fell 1 basis point to 0.195 percent after dropping to a record low of 0.190 percent.
Also pressuring JGB yields, German 10-year government bond yields fell below zero for the first time earlier this week, amid growing fears that Britain will vote to leave the European Union in a June 23 referendum.
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