Long-dated JGBs inch lower ahead of major cenbank meetings

  • 12/14/2020
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TOKYO, Dec 14 (Reuters) - Long-dated Japanese government bond prices edged lower on Monday ahead of U.S. and Japan central bank meetings this week. Benchmark 10-year JGB futures rose 0.06 point to 152.12, with a trading volume of 11,269 lots, while the 10-year JGB yield was flat at 0.010%. In the super-long zone, the 20-year JGB yield added 1 basis point to 0.385%, while the 30-year JGB yield edged 1.5 basis points higher to 0.625%. The two-year JGB, the five-year note and the 40-year bond yields were untraded. The market reacted little to the Bank of Japan’s tankan survey, which showed the mood among big manufacturers improved for the second straight quarter to minus 10 this month from minus 27 in September. Trading was subdued as market participants stayed on the sidelines ahead of Fed meeting this week, where policymakers are expected to increase purchases of longer-dated U.S. Treasuries to contain a rise in yields. Back home, traders have already priced in the BOJ’s two-day monetary policy meeting later this week, as the central bank is widely expected to keep its current policy unchanged and to extend its special measures in response to the coronavirus, a market participant said. (Reporting by Tokyo markets team, Editing by Sherry Jacob-Phillips)

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