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JGBs Firm after BOJ Operation Underscores Lack of Sellers

TOKYO, Dec 8 (Reuters) - Japanese government bond prices firmed on Wednesday, turning positive after the results of the Bank of Japan's (BOJ) bond purchase underscored limited selling interest from market players.

The market managed to erased the losses made earlier during the session on receding fears about the Omicron variant.

The BOJ bought a total of 1.025 trillion yen ($9.03 billion) JGBs on Wednesday. Its buying of 425 billion yen in JGBs with more than five to ten years to maturity attracted limited selling, in particular, improving market sentiment, traders said.

The market showed no response to comments from BOJ Deputy Governor Masayoshi Amamiya that there was no need for the central bank to tweak its ultra-loose policy. 

Benchmark 10-year JGB futures closed up 0.03 point at 152.07, after having fallen to 151.96 earlier.

In the cash bond market, the 10-year JGB yield fell 0.5 basis point to 0.045% while the 20-year yield also slipped 0.5 basis point to 0.455%.

The 30-year yield ticked down 0.5 basis point to 0.670% while the five-year yield was flat at minus 0.095%.

($1 = 113.53 yen)

Reporting by Tokyo Markets Team; Editing by Rashmi Aich

Source: Reuters

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