TOKYO, April 11 (Reuters) - Long-dated Japanese government bond prices edged higher on Wednesday despite a retreat in global bonds, buoyed by hopes that the Bank of Japan is likely to maintain the pace of purchases in most maturities.
Global bonds retreated in the previous session after Chinese President Xi Jinping promised to cut import tariffs, which eased concerns about a U.S.-China trade spat.
However, JGBs stood firmer on expectations that the BOJ is likely to maintain the size of JGB purchases, as a cut could be taken as a shift to reduction in its stimulus.
Ten-year JGB futures rose 0.02 points to 150.99, with a paltry trading volume of 13,792 lots.
The benchmark 10-year JGB yield was flat at 0.030 percent.
Longer-dated bonds were firmer even ahead of 30-year JGB auction on Thursday.
The benchmark 20-year JGB yield fell 0.5 basis point to 0.505 percent, while the 30-year JGB yield fell 1 basis point to 0.720 percent.
The benchmark 40-year JGB yield fell 1 basis point to 0.855 percent.
Given that the Ministry of Finance is reducing the issuance of most maturities of JGBs in the financial year that started on April 1, many traders expect the market to be well-supported.
The finance ministry had said it would reduce the issue amount of 30-year JGBs to 700 billion yen ($6.54 billion) from this month, compared with 800 billion yen for auctions until March.
$1 = 107.0300 yen Reporting by Tokyo Markets team, Editing by Sherry Jacob-Phillips