LongTerm JGB Yields Fall ahead of Fed, BOJ Meetings

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TOKYO, March 17 Reuters Longterm Japanese government bond yields fell slightly as traders braced for important monetary policy meetings by the U.S. Federal Reserve and the Bank of Japan.

U.S. policymakers may bring forward their expectations for rate hikes due to an improving U.S. economy at a Fed meeting ending later on Wednesday, but some investors say a recent rise in longterm yields globally has gone too far.

The BOJ also holds a policy meeting ending on Friday, but Governor Haruhiko Kuroda has quashed expectations that he would allow 10year yields to trade in a wider band, which is placing downward pressure on the long end of the yield curve, dealers said.

Benchmark 10year JGB futures rose 0.04 point to 151.23, with a trading volume of 11,355 lots.

The 10year JGB yield fell 0.5 basis point to 0.090, while 20year JGB yields fell 0.5 basis point to 0.475.

The 30year JGB yield fell 0.5 basis point to 0.660.

At the long end, the 40year JGB yield fell 0.5 basis point to 0.700.

The fiveyear yield was flat at minus 0.100.

At the short end of the curve, the twoyear JGB yield was unchanged at minus 0.150.

Reporting by the Tokyo markets team; editing by Uttaresh.V

Source Reuters

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