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Superlong JGB yields fall after BOJ increases buying operation
December 14, 2016 / 2:15 AM / a year ago

Superlong JGB yields fall after BOJ increases buying operation

TOKYO, Dec 14 (Reuters) - Superlong Japanese government bond yields fell on Wednesday as prices rose after the Bank of Japan increased buying in that zone as part of its regular buying operations.

A BOJ official said the increase was aimed at steering the JGB yield curve toward what the central band deems appropriate, and that the move took into account recent rapid rises in super-long yields and the possibility of further volatility.

Under its current monetary policy framework of “yield curve control” unveiled in September, the BOJ aims to guide the 10-year JGB yield to around zero percent.

The BOJ offered to buy 120 billion yen ($1.04 billion) of JGBs with over 25 years left to maturity. It also offered to buy 200 billion yen of JGBs with between 10 and 25 years left to maturity.

Superlong JGB yields have risen to multi-month highs in recent sessions, tracking global yields higher. Yields on U.S. Treasuries have soared since the Nov. 8 election of Donald Trump, whom market participants expect will adopt inflation-stoking policies.

The 30-year yield, which touched its highest levels since mid-March in the previous session, shed 8 basis points (bps) to 0.725 percent, down from an earlier session high of 0.785 percent.

The benchmark 10-year yield fell 2 bps to 0.060 percent, while 10-year JGB futures added 0.22 point to 150.04. (Reporting by Tokyo markets team)

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