TOKYO, April 3 Japanese government bond prices
were mostly steady on Monday following gains by U.S. Treasuries,
although shorter-dated debt sagged with the Bank of Japan set to
buy less of the maturities at its regular operations in April.
The benchmark 10-year JGB yield was flat at
1.065 percent and the 30-year yield dipped a basis
point to 0.835 percent, supported by a regular debt-buying
operation the BOJ conducted on Monday.
The two-year yield in contrast rose 2 basis
points to minus 0.175 percent, its highest since late December.
As expected the central bank announced on Friday that it
will trim the amount of one- to three-year and three- to
five-year JGBs it buys in April, while leaving the purchase
amounts of longer-dated JGBs unchanged.
The BOJ's massive bond-buying programme has reduced
liquidity across maturities, leaving bond investors and dealers
to often scramble for JGBs still available in the market. In an
attempt to improve liquidity and reduce volatility, the BOJ has
been tweaking its bond-buying.
Treasuries advanced on Friday after a chorus of Federal
Reserve officials questioned the need for a faster pace of
interest rate increases given tame inflation and just modest
growth in the U.S. economy.
(Reporting by the Tokyo markets team; Editing by Randy Fabi)