September 20, 2019 / 4:55 AM / a month ago

JGB yields rise after BOJ says to trim govt debt purchases

TOKYO, Sept 20 (Reuters) - Japanese government bond yields at the long end of the curve rose on Friday after the Bank of Japan said it will reduce slightly the amount of debt it purchases for its quantitative easing.

Benchmark 10-year JGB futures fell 0.01 point to 154.76, with a trading volume of 24,590 lots.

The 10-year JGB yield rose 0.5 basis point to minus 0.225%.

The 20-year JGB yield rose 1.5 basis points to 0.180%. The 30-year JGB yield increased 3 bps to 0.345%.

The 40-year JGB yield rose 5.5 bps to 0.405%.

At the short end of the curve, the two-year JGB yield fell 0.5 basis point to minus 0.310%.

The BOJ said earlier on Friday that starting from next week it will reduce the amount of government debt it buys.

A minor cut in purchases of longer-dated bonds was widely expected. The BOJ also trimmed short-term debt purchases, which confused some investors because it is widely assumed that the BOJ wants a steeper yield curve, dealers said.

The BOJ kept monetary policy steady on Thursday but signalled the chance of expanding stimulus as early as its next policy meeting in October by issuing a stronger warning against overseas risks. (Reporting by the Tokyo Markets Team; Editing by Subhranshu Sahu)

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