JGBs edge down, taking cue from Treasuries

TOKYO: Japanese government bonds edged lower on Wednesday, taking cue from higher U.S. Treasury yields in sparse year-end trade.

The benchmark 10-year cash JGB yield added 1 basis point to 0.050 percent, while 10-year JGB futures ended down 0.11 point at 150.69.

The 2-year yield rose half a basis point to minus 0.140 percent, while the five-year yield was up 1 basis point at minus 0.095 percent.

In the superlong zone, the 20-year yield was half a basis point higher at 0.565 percent, while the 30-year yield added half a basis point to 0.815 percent.

On Tuesday, two-year U.S. Treasury yields rose to their highest levels in nine years as investors focused on new supply being sold into light trading conditions this week, and on large increases in issuance expected in 2018.

In its asset purchase operations on Wednesday, the Bank of Japan offered to buy 50 billion yen ($441.74 million) of JGBs with maturities up to one year, 250 billion yen of one- to three-year JGBs, 300 billion yen of three- to five-year JGBs and 25 billion yen of inflation-linked JGBs. The amounts were consistent with past operations.

At 0700 GMT on Friday, the BOJ will announce details of its JGB buying plans for January.