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Long-dated JGBs Slip, 10-year Yield Touches 2 1/2-month Peak

On Monday Japanese government bond rates facilitated, with the benchmark 10-year yield hitting over 2 1/2-month highs, broadening their retreat since prior to this month on expectations of a China-U.S. exchange accord and retreating desires for a BOJ facilitating.

japanPhoto: Flickr

Shorter maturities fared better after the BOJ's purchasing activity on Monday drew limited offers from investors, and after BOJ Governor Haruhiko Kuroda stated he would “certainly” sliced short term lending rates when facilitating is required.

The 10-year Japanese government bond yield added 1.5 bps to minus 0.140 percent, its maximum since Aug. 1, and has risen 9 bps from Oct. 7 low of minus 0.230 percent.

The 20-year Japanese government bond yield added 2 bps to 0.250 percent while the 30-year yield gained 1 bp to 0.410 percent, both nearing their peaks for the month.

The five-year yield tumbled 0.5 bp, yet, to minus 0.275 percent, after having ascended to a five-week peak of minus 0.265 percent prior.

The Bank of Japan kept the size of its bond buys unaltered on Monday, purchasing 420 billion yen of 1-3 year JGBs, 340 billion yen of 3-5-year JGBs and 350 billion yen of 5-10 year JGBs.

It's purchasing of 3-5 year JGBs saw restricted selling from the market, boosting the maturities invert prior misfortunes.

Benchmark 10-year Japanese government bond futures dropped 0.16 points to 154.07.


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