Japan’s 10-year bond yields fall to near 4-week lows


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TOKYO — Japan’s 10-year government bond yields fell to their lowest in nearly four weeks after the Bank of Japan kept its ultra-low interest late policy unchanged in a widely expected conclusion to its policy-setting meeting.

The 10-year JGB yield fell 1.5 basis points to 0.235%, its lowest since Oct. 4, after hovering at the top of the central bank’s policy band for a week.

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The BOJ kept ultra-low interest rates and maintained its dovish guidance, cementing its status as an outlier among global central banks tightening monetary policy, as recession fears dampen prospects for a solid recovery.

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“The outcome (of the BOJ’s policy meeting) was in line with expectations. Investors were buying bonds to cover their short positions ahead of the meeting so that was sign that the market also had expected this,” said Takafumi Yamawaki, head of Japan rates research at J.P. Morgan Securities.

“Yields may have not peaked yet, but global trend of rising yields seems to be pausing now, which has made it easier for the Bank of Japan to keep its yield curve control policy.”

The 20-year JGB yield fell 5 basis points to 1.060%, lowest since Oct. 14.

The two-year JGB yield fell 0.5 basis point to -0.050%.

Benchmark 10-year JGB futures rose 0.14 point to 148.8, with a trading volume of 9,750 lots. (Reporting by Junko Fujita; Editing by Rashmi Aich)


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