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Markets

Benchmark JGBs ease, next week's BOJ meeting awaited

Published Updated

imageTOKYO: Benchmark Japanese government bonds eased on Friday but moves were limited as investors waited to see if the Bank of Japan will offer more stimulus at a policy review late next week.

The 10-year JGB yield added 1 basis point to minus 0.225 percent, up from an earlier session low of minus 0.240 percent.

September 10-year futures inched 0.02 point lower to end at 153.18.

Investors remained way about the BOJ's July 28-29 meeting, and whether or not the central bank will take further easing steps - as well as what form such steps might take.

Bank of Japan Governor Haruhiko Kuroda's remarks in a BBC Radio 4 interview quashed expectations that Japan might be preparing to take radical "helicopter money" economic stimulus steps, under which the central bank would finance government budgets to fight deflation.

Investors also awaited word on a massive spending package the Japanese government is now compiling, said to be worth about $190 billion. That amount was about double the size initially floated, though actual public spending would be far less than the headline number suggests.

The 20-year JGB yield was flat at 0.175 percent, above a session low of 0.155 percent, while the 30-year JGB yield was flat at 0.260 percent.

The 5-year JGB yield edged down half basis point to minus 0.335 percent. Recently, some Japanese banks have been buying 5-year notes for trading purposes, market participants said.

Copyright Reuters, 2016

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