JGBs mostly flat, superlongs step back after recent gains

22 Dec, 2016

TOKYO: Japanese government bond prices were largely unchanged on Thursday but superlong bonds eased slightly in late trade on unwinding of recent buys after the Bank of Japan's move to support those maturities last week.

The JGB issue plan for the fiscal year beginning next April announced by the Ministry of Finance was mostly in line with market expectations and did not produced any reaction, market players said.

The benchmark 10-year JGB yield was flat at 0.055 percent, while 10-year JGB futures were 0.07 higher at 149.88.

The yield on longer dated bonds rose on profit-taking in holiday-thinned trade. Japanese markets will be closed for a holiday on Friday and many market players will be away next week for the year-end.

The 20-year yield rose 1.5 basis points to 0.570 percent while the 30-year yield gained 2.5 basis points to 0.680 percent.

Those yields have fallen this week after hitting their highest levels in nine months or more last week as the BOJ increased buying in those maturities to cap their rise.

It was the first such action by the central bank after embarking on the current yield curve control policy in September.

Copyright Reuters, 2016

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