JGBs edge up as BoJ buying helps, Nikkei rise tempers gains

12 Dec, 2014

TOKYO: Japanese government bond prices edged higher on Friday, helped by the Bank of Japan's regular debt-buying operation.

The BoJ offered to buy a total of 1.3 trillion yen ($10.92 billion) of JGBs with maturities ranging from one year to 10 years, as part of its extensive monetary easing programme.

The BoJ did not include super long JGBs in its purchases and the yield curve steepened as a result, with the 30-year yield rising 2 basis points to 1.395 percent.

The central bank reduced its regular purchase of treasury bills to 500 billion yen from 750 billion yen at the previous operation.

Market participants do not think the reduction will substantially ease downward pressure on bill yields, which are already established firmly below zero.

The benchmark 10-year JGB yield fell half a basis point to 0.400 percent.

March 10-year JGB futures gained 0.08 point to 147.25.

Tokyo's Nikkei gained 1.4 percent following overnight gains on Wall Street and helped cap JGB prices.

Copyright Reuters, 2014

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