TOKYO, Sept 15 Japanese government bond prices
rose on Thursday and the relentless steepening in their yield
curve eased as investors looked to the Bank of Japan's policy
meeting next week.
The benchmark 10-year JGB yield fell 2.0
basis points to minus 0.040 percent.
Yields on longer-dated bonds also dropped after they hit
six-month highs on Wednesday on speculation that the Bank of
Japan could reduce buying in those maturities as early as next
week, when it announces the results of its policy reassessment
it had promised in July.
A consensus is building among market players that the BOJ
will combine a cut in short-term interest rates deeper into
negative levels with modification in its bond buying to engineer
a steeper yield curve when it eases its policy.
Whether it does so at its meeting on Sept. 20-21 is a bit
less certain, with many market players now thinking the BOJ may
prefer to save its dwindling ammunition.
The 20-year JGB yield, which rose to a six-month high of
0.495 percent, fell to 0.455 percent, down 2.0
basis points from the previous close.
The 30-year yield fell 3.0 basis points to 0.545 percent
, off Wednesday's six-month high of 0.605 percent.
Shorter maturities were little moved, with five-year yield
ticking down 0.5 basis point to minus 0.210
The two-year JGB yield was flat at minus 0.275 percent
The benchmark 10-year JGB futures price rose 0.14 point to
(Reporting by Hideyuki Sano; Editing by Subhranshu Sahu)