JGB Yields Fall Following BOJ Bond Buy Operation

TOKYO, April 4 (Reuters)Yields on Japanese government bonds (JGB) fell on Monday after the Bank of Japan made its first bond buying operation following its promise to boost buying.

The yield of the JGB at 10 years JP10YTN=JBTC fell 0.5 basis points to 0.210%.

The Bank of Japan announced last week an acceleration of planned bond purchases in the April-June quarter, after 10-year yields hit 0.25%, the upper limit of the bank’s yield cap.

This rise prompted the central bank to offer to buy unlimited amounts of 10-year bonds at a fixed rate of 0.25% for four consecutive days.

On Monday, investors witnessed moderately firm results from the trade, while strengthened supply supported sentiment, a market participant said.

The yield of the JGB at 20 years JP20YTN=JBTC rose 0.5 basis points to 0.710%.

JGB yield at 30 years JP30YTN=JBTC rose one basis point to 0.950%.

The JGB yield at 40 years JP40YTN=JBTC increased by 1 basis point to 1.005%.

Yields on short-term notes also fell, with the yield on the two-year JGB JP2YTN=JBTC down 0.5 basis points to minus 0.045% and the five-year yield JP5YTN=JBTC down 0.5 basis point to 0.010%.

Benchmark 10-Year JGB Futures 2JGBv1 rose 0.06 points to 149.76, with a trading volume of 10,786 lots.

(Tokyo Markets Team Report)

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