TOKYO, April 6 Japanese government bonds were
steady on Thursday, underpinned by firm U.S. Treasuries as
market participants awaited the Bank of Japan purchase
operations, while superlong yields edged down after a
The benchmark 10-year JGB yield was flat at 0.060 percent
, while 10-year JGB futures ended up 0.1 points at
U.S. Treasury yields fell overnight, with three- and
five-year yields touching more than five-week lows after traders
viewed the latest U.S. Federal Reserve meeting minutes as
indicating the central bank was maintaining a relatively dovish
outlook for a gradual pace of interest rate hikes.
The Ministry of Finance offered 500 billion yen ($4.53
billion) of off-the-run 20- and 30-year JGB issues with 15 years
or more left to maturity, in a regular sale aimed at enhancing
The 20-year JGB yield fell 1.5 basis points
(bp) to 0.630 percent, while the 30-year JGB yield
shed 2.5 basis points to 0.840 percent.
The 40-year yield shed 3 bps to 1.050 percent
, moving away from its previous session high of
1.090 percent, which was its highest level since February 2016.
Investors were waiting to see if the BOJ trims its purchases
of longer JGBs in operations on Friday, the possibility of which
bolstered market sentiment.
In its bond-buying operations on Wednesday, the central bank
offered to buy only 280 billion yen of one- to three-year JGBs,
which was the lowest level in almost three years, and was 20
billion yen less than its previous purchase amounts in that
zone. However, it was still above the midpoint of the BOJ's 200
billion yen to 300 billion yen buying target range.
($1 = 110.5200 yen)
(Reporting by Tokyo markets team; Editing by Sherry