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Long-term JGB yields fall ahead of Fed, BOJ meetings

Long-term JGB yields fall ahead of Fed, BOJ meetings

· 03/17/2021 01:22
Long-term JGB yields fall ahead of Fed, BOJ meetings

- Long-term 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 long-term yields globally has gone too far. nL1N2L82OT

The BOJ also holds a policy meeting ending on Friday, but Governor Haruhiko Kuroda has quashed expectations that he would allow 10-year yields to trade in a wider band, which is placing downward pressure on the long end of the yield curve, dealers said. nL4N2LD0MT

Benchmark 10-year JGB futures 2JGBv1 rose 0.04 point to 151.23, with a trading volume of 11,355 lots.

The 10-year JGB yield JP10YTN=JBTC fell 0.5 basis point to 0.090%, while 20-year JGB yields JP20YTN=JBTC fell 0.5 basis point to 0.475%.

The 30-year JGB yield JP30YTN=JBTC fell 0.5 basis point to 0.660%.

At the long end, the 40-year JGB yield JP40YTN=JBTC fell 0.5 basis point to 0.700%.

The five-year yield JP5YTN=JBTC was flat at minus 0.100%.

At the short end of the curve, the two-year JGB yield JP2YTN=JBTC was unchanged at minus 0.150%.


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

((stanley.white@tr.com; +81 (0)3 4563 2799; twitter.com/stanleywhite1 ;))