Long-term JGB yields fall ahead of Fed, BOJ meetings

TOKYO: Long-term Japanese government bond yields fell slightly as traders braced for important monetary policy meetings by the US Federal Reserve and the Bank of Japan.

US policymakers may bring forward their expectations for rate hikes due to an improving US economy at a Fed meeting ending later on Wednesday, but some investors say a recent rise in long-term yields globally has gone too far.

The BOJ also holds a policy meeting ending on Friday, but Governor Haruhiko Kuroda has quashed expectations that he would allow 10-year yields to trade in a wider band, which is placing downward pressure on the long end of the yield curve, dealers said.

Benchmark 10-year JGB futures rose 0.04 point to 151.23, with a trading volume of 11,355 lots.

The 10-year JGB yield fell 0.5 basis point to 0.090%, while 20-year JGB yields fell 0.5 basis point to 0.475%.

The 30-year JGB yield fell 0.5 basis point to 0.660%.

At the long end, the 40-year JGB yield fell 0.5 basis point to 0.700%.

The five-year yield was flat at minus 0.100%.

At the short end of the curve, the two-year JGB yield was unchanged at minus 0.150%.