May 22, 2017 / 6:25 AM / 2 months ago

JGBs edge down, taking cue from firmer stocks, lower Treasuries

2 Min Read

TOKYO, May 22 (Reuters) - Japanese government bonds edged down on Monday, taking their cue from U.S. Treasuries as firm equities sapped demand for safe-haven debt.

The benchmark 10-year cash JGB yield added one basis point to 0.045 percent, while 10-year JGB futures ended down 0.08 point at 150.55.

In the superlong zone, the 20-year JGB yield added one basis point to 0.565 percent, while the 30-year JGB yield rose 1.5 basis points to 0.805 percent.

Japan's Nikkei stock index climbed 0.5 percent on Monday, while the benchmark 10-year U.S. Treasury yield stood at 2.255 percent in Asian trading, above its U.S. close on Friday of 2.245 percent.

In its regular bond buying operations, the Bank of Japan offered to purchase 280 billion yen ($2.51 billion) of JGBs maturing in 1 to 3 years, as well as 300 billion yen of JGBs maturing in 3 to 5 years, unchanged from its previous operation that included buying in those zones. It also offered to buy 25 billion yen of JGBs linked to consumer prices, and 100 billion yen of corporate bonds.

Also undermining bond market sentiment, data released early in the session showed Japan's exports rose in April to mark their fifth straight month of gains, signalling that more robust overseas demand could underpin a steady economic recovery.

Growing signs of life in Japan's economy have presented the BOJ with a communications challenge, pushing it to be clearer with markets on how it might dial back its massive stimulus - a step which the majority of economists and market participants say remains a long way off.

$1 = 111.4800 yen Reporting by Tokyo markets team; Editing by Sunil Nair

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