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LongDated JGBs Inch Lower Ahead of Major Cenbank Meetings

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Longdated Japanese government bond prices edged lower on Monday ahead of U.S. and Japan central bank meetings this week.

Benchmark 10year JGB futures rose 0.06 point to 152.12, with a trading volume of 11,269 lots, while the 10year JGB yield was flat at 0.010.

In the superlong zone, the 20year JGB yield added 1 basis point to 0.385, while the 30year JGB yield edged 1.5 basis points higher to 0.625.

The twoyear JGB, the fiveyear note and the 40year bond yields were untraded.

The market reacted little to the Bank of Japans 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 longerdated U.S. Treasuries to contain a rise in yields.

Back home, traders have already priced in the BOJs twoday 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 JacobPhillips

Source Reuters

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