JGB Yields Rise in Cautious Trade Ahead of BOJ Policy Review

TOKYO, Feb 24 Reuters Japanese government bond yields rose on Wednesday as investors remained wary of buying ahead of a Bank of Japan policy review next month, amid speculation it could widen the 40 basis point band under which it allows 10year yields to move around its 0 target.

Japans benchmark 10year government bond yields had risen to their highest in more than two years, drawing market attention to how the central bank would respond if yields keep creeping away from its target.

It has become more difficult for investors to keep their long positions ahead of the central banks policy review, said a trader at a Japanese brokerage.

The 10year JGB yield rose 0.5 basis point to 0.120, matching a twoyear high touched on Monday. The market was closed on Tuesday for a national holiday.

The 20year JGB yield rose one basis point to 0.530, while the 30year JGB yield climbed 1.5 basis points to 0.710. The twoyear JGB yield was flat at minus 0.115 and the fiveyear yield was flat at minus 0.070. The 40year JGB yield rose 1.5 basis points to 0.755.

Benchmark 10year JGB futures rose 0.06 point to 151.12, with a trading volume of 32,215 lots.

Reporting by Tokyo markets team; Editing by Subhranshu Sahu

Source Reuters

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