Japanese government bonds solidified on Monday as traders turned careful about the result of China-U.S. exchange negotiations after a report that Chinese authorities flagged they were progressively hesitant to agree to an expansive arrangement with the U.S.
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The Bank of Japan didn't decrease the measure of its Japanese government bond buy in its activity on Monday, in which it purchased 1-3, 3-5, 10-25 and 25-40 year bonds.
Some investors had speculated the national bank could decrease the size of its purchasing in long-dated bonds as BOJ Governor Haruhiko Kuroda has made it unmistakable since a month ago that he might want to see a lower yield curve.
Benchmark 10-year Japanese government bond futures advanced 0.06 point to 155.21, yet exchange was quiet with volume beating only 10,000 lots by late evening.
The 10-year Japanese government bond yield tumbled 1 bp to minus 0.225 percent, declining further from its two-month peal of minus 0.145 percent.
The five-year yield dropped 0.5 bp to minus 0.375 percent, crawling towards a record low of minus 0.400 percent contacted a month ago.
Longer maturities were slightly changed with both the 20-year Japanese government bond yield and 30-year yield unchanged at 0.180 percent and 0.350 percent.