TOKYO: Yields on super-long dated Japanese government bonds rose on Wednesday after a relatively weak outcome of the Bank of Japan’s bond buying, while the benchmark 10-year bonds were not traded ahead of the US Federal Reserve’s policy outcome.
The 20-year JGB yield rose 2 basis points to 1.115%, its highest since Oct. 27, while the 30-year JGB yield jumped 4 basis points to 1.530%, its highest since Oct. 26.
“Investors were weighed down by the weakness of the market in the previous session, and they saw a weak outcome of the Bank of Japan’s bond buying for the notes with maturities longer than 25-years,” said Kazuhiko Sano, a strategist at Tokai Tokyo Securities.
Yields on Japan’s super-long notes fall after BOJ ramps up bond buying
Ataru Okumura, strategist at SMBC Nikko Securities, said investors seemed to have reduced their holdings of longer notes in the run-up to an auction for 30-year notes next week.
The 10-year JGBs did not trade since the yield stayed at 0.245%, as investors awaited the release of the Fed’s policy statement at 2 p.m. EDT (1800 GMT) on Wednesday.
Benchmark 10-year JGB futures fell 0.09 point to 148.77, with a trading volume of 9,033 lots. The two-year JGB yield and the five-year yield were flat at -0.045% and 0.070%, respectively.
The 40-year JGBs did not trade and the yield was at 1.705%.
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