TOKYO, March 1 Japanese government bonds fell on
Wednesday, with the yield curve steepening as superlong
maturities sold off a day after the Bank of Japan tweaked its
planned JGB buying operations.
The benchmark 10-year JGB yield rose 1 basis point (bp) to
0.060 percent, while 10-year JGB futures ended
down 0.11 point at 150.47.
The BOJ trimmed its purchases of shorter maturities in its
JGB buying operations on Wednesday, a day after announcing
changes aimed at making its operations more transparent.
The central bank offered to buy 400 billion yen of JGBs
maturing in three to five years, compared with 420 billion yen
previously. It offered to buy 320 billion yen of JGBs maturing
in one to three years, compared with 400 billion previously.
"They reduced the purchase amount at the short end of the
curve, which was pretty much expected," said Tadashi Matsukawa,
head of fixed income investment in Tokyo at PineBridge
"The market reaction seems to be that some believe the BOJ
will be curtailing the 25-year and over purchases," he said.
"Personally, I think it's a little bit premature for them to do
The 20-year yield rose 2.5 bps to 0.650
percent, while the 30-year JGB yield added 4 bps
to 0.840 percent.
On Tuesday, the central bank announced the dates of its
bond-buying operation for March, a move aimed at smoothing
market operations by curbing excessive market volatility. The
plan indicated the BOJ is likely to maintain the pace of
purchases in most maturities while trimming slightly its buying
of short-term bonds.
The central bank should not rule out the possibility of
raising its bond yield targets before its price goal of 2
percent is achieved, BOJ board member Takehiro Sato said on
(Reporting by Tokyo markets team; Editing by Gopakumar Warrier)