October 7, 2019 / 5:54 AM / a month ago

JGBs firm on trade talk concerns, BOJ's steady buying

TOKYO, Oct 7 (Reuters) - Japanese government bonds firmed on Monday as investors turned cautious about the outcome of Sino-U.S. trade talks after a report that Chinese officials signalled they were increasingly reluctant to agree to a broad deal with the United States.

The Bank of Japan did not reduce the amount of its JGB purchase in its operation on Monday, in which it bought 1-3, 3-5, 10-25 and 25-40 year bonds.

Some market players had speculated the central bank could reduce the size of its buying in long-dated bonds as BOJ Governor Haruhiko Kuroda has made it clear since last month that he would like to see a steeper yield curve.

Benchmark 10-year JGB futures rose 0.06 point to 155.21, though trade was thin with volume topping just 10,000 lots by late afternoon.

The 10-year JGB yield fell 1 basis point to minus 0.225%, declining further from its two-month high of minus 0.145%.

The five-year yield fell 0.5 basis point to minus 0.375%, inching towards a record low of minus 0.400 percent touched last month.

Longer maturities were little changed with both the 20-year JGB yield and 30-year yield flat at 0.180% and 0.350%. (Reporting by Tokyo Markets Team)

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