June 14, 2018 / 4:21 AM / 2 months ago

JGBs supported as risk aversion hits equities

TOKYO, June 14 (Reuters) - Japanese government bond prices were steady to a touch firmer on Thursday, as investor risk aversion weighed on Japan’s equities.

The five-year JGB yield was flat at minus 0.110 percent and the 20-year yield dipped half a basis point to 0.515 percent.

September 10-year JGB futures added 0.08 point to 150.69.

The JGB market took in stride a decision by the Bank of Japan to trim the amount of mid-term maturity debt it offered to purchase at Thursday’s regular operation.

The central bank reduced the purchase of JGBs with three to five years to maturity to 300 billion yen ($2.72 billion) from the previous 330 billion yen.

The BOJ often tweaks the amount of JGBs it buys at these operations as a part of its yield curve controlling scheme, and the market had anticipated Thursday’s reduction as the central bank was expected to alleviate recently tight supply conditions.

Japan’s Nikkei dropped 0.5 percent after the Federal Reserve forecast a slightly faster pace of rate hikes this year, while concerns about a U.S.-China trade tensions also soured sentiment. ($1 = 110.2200 yen) (Reporting by the Tokyo markets team; Editing by Sunil Nair)

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