TOKYO: Yields on super-long Japanese government bonds (JGBs) fell to multi-week lows on Monday after the Bank of Japan boosted its planned purchase of bonds with those maturities for November.
The 30-year JGB yield fell as low as 1.390%, its lowest since Oct. 7, and was last at 1.400%, down 4 basis points.
The 20-year JGB yield fell 4.5 basis points to 1.035%, its lowest since Oct. 12.
The 40-year JGB yield fell 3.5 basis points to 1.620%.
The Japanese central bank increased the frequency of its offers to buy bonds with 10- and 25-year tenures as well as those with maturities of more than 25 years in November.
“More attention was paid to the fact that the central bank did not increase its purchase of shorter-ended notes,” said Makoto Suzuki, a senior strategist at Okasan Securities.
“Yields on longer-dated notes may not fall without declines in yields on shorter-dated notes.” The 10-year JGB yield was flat at 0.240%.
The five-year yield was also flat at 0.070%.
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The two-year JGBs were not traded and the yield stayed at -0.050%.
Benchmark 10-year JGB futures rose 0.07 point to 148.84, with a trading volume of 9,361 lots.
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