TOKYO: Prices of most Japanese government bonds edged lower in subdued trade on Wednesday, as traders were reluctant to make big moves ahead of the U.S. Federal Reserve's policy decision due later in the day.
Investors are looking to the outcome of the Federal Reserve's rates review later in the day, with expectations policymakers will reinforce their recent dovish stance given signs of a slowdown in the U.S. economy.
The 10-year JGB futures stood flat at 152.64, with a trading volume of 15,041 lots, by late afternoon trade.
The benchmark 10-year cash JGB yield was half a basis point higher on the day at 0.005 percent.
The super-long sector followed suit, with the 20-year yield inching up 0.5 basis point to 0.460 percent, while the 30-year and 40-year yields rising 1 basis point each to 0.660 percent and 0.750 percent, respectively.
U.S. Treasury yields fell on Tuesday, with the 10-year yield dropping to 2.710 percent and the two-year yield , which reflects market expectations of rate hikes, declining to 2.57 percent, respectively.
The Federal Open Market Committee will release a policy statement at 2 p.m. EST (1900 GMT) on Wednesday and hold a news conference starting at 2:30 p.m. EST (1930 GMT).