TOKYO Dec 9 The benchmark Japanese government
bond yield hit a 10-month high on Friday as the super long
maturities slumped following the previous day's 30-year debt
The 30-year JGB yield rose 5.5 basis points to 0.705 percent
, its highest since mid-March.
"It appears that some participants opted to sell a part of
the new 30-years bought yesterday as they were not included in
the Bank of Japan's debt purchases today," said a dealer with a
The BOJ regularly buys JGBs from the market as part of its
big debt-purchasing scheme.
Japan's finance ministry had sold 800 billion yen ($7.00
billion) of 30-year JGBs on Thursday.
The 10-year benchmark JGB yield was up 1
basis point at 0.050 percent after hitting 0.055 percent, its
highest since February.
Market focus was on whether the BOJ would be prompted to act
should the yield rise further.
The central bank introduced a policy in September to keep
the 10-year yield around zero percent, and the market sees
levels around 0.050 percent as the upper limit of its target
Turbulence in the eurozone bond market following the
European Central Bank's policy decision on Thursday also added
to the upward bias on JGB yields.
Long-dated eurozone bond yield climbed on Thursday after the
ECB extended its asset purchase programme but at a reduced level
and introduced measures allowing it to buy more short-dated
($1 = 114.2600 yen)
(Reporting by the Tokyo markets team; Editing by Subhranshu