Markets

JGBs mostly flat, erase gains ahead of Fed meeting

Published December 17, 2014 Updated December 17, 2014 07:13am

TOKYO: Japanese government bond prices erased earlier gains to stay mostly flat on Wednesday as investors took profits ahead of the US Federal Reserve's policy meeting outcome.

JGBs gained earlier as concerns about slumping oil prices and the rouble's collapse sparked flight-to-quality buying in US Treasuries and other developed-country bonds.

The 10-year JGB yield stood at 0.360 percent, up 0.5 basis point on the day after having fallen to 0.345 percent, its lowest level since April 2013.

Market players were taking profits from recent gains on rising speculation the Fed could refrain from dropping hints of rate hikes next year as plunging oil prices raise concerns over the global economic outlook.

Some bearish domestic pension funds also sold mid- to long-term JGBs to shift into equities. The five-year yield was flat at 0.050 percent, after setting a record low of 0.040 percent earlier.

Copyright Reuters, 2014