September 2, 2019 / 4:11 AM / 13 days ago

JGB yields bounce from multi-year lows as BOJ to trim bond buying

TOKYO, Sept 2 (Reuters) - Japanese government bond (JGB) prices dipped and their yields pulled back from multi-year lows on Monday, after the Bank of Japan (BOJ) opted to trim the amount of bonds it buys at regular operations in an attempt to temper the recent slide in yields.

The central bank said on Friday that it will cut the amount of its JGB purchases in September, signalling to markets that it is seeking to prevent long-term interest rates from sliding further toward record lows.

In line with its stance to slow the decline in JGB yields -part of a global phenomenon driven by expectations towards easy monetary policy and fears of a global recession - the BOJ reduced the amount of 10- to 25-year bonds it offered to buy on Monday to 140 billion yen ($1.33 billion) from 160 billion yen.

The benchmark 10-year JGB yield was 1 basis point higher at minus 0.270% after sliding to a three-year low of minus 0.290% on Thursday. A drop below minus 0.300% would take the 10-year yield to a record low.

The 20-year yield rose 1.5 basis points to 0.060% following a descent to 0.040% last week, its lowest since July 2016.

$1 = 105.3900 yen Reporting by the Tokyo markets team; Editing by Rashmi Aich

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