JGB yields at 1-1/2-month low after busy week of central bank meetings

Credit: REUTERS/THOMAS WHITE

Japanese government bonds edged up on Friday and were on track to end the week higher, with yields at their lowest levels since early August on robust demand after major central banks signalled sustained easy policy ahead.

TOKYO, Sept 18 (Reuters) - Japanese government bonds edged up on Friday and were on track to end the week higher, with yields at their lowest levels since early August on robust demand after major central banks signalled sustained easy policy ahead.

Demand for medium-term maturities was strong this week, coming from both domestic and international investors, said a trader at a Japanese brokerage.

The bullish mood came as central banks in the United States, Japan and Britain all suggest this week they are committed to extremely easy monetary policy.

The five-year yield JP5YTN=JBTC fell 0.5 basis point to minus 0.120%, its lowest level since Aug. 5.

The 10-year JGB yield JP10YTN=JBTC stood at 0.010%, flat from previous close, which was also the lowest level since early last month.

Benchmark 10-year JGB futures 2JGBv1 rose 0.04 point to 152.09.

Trade was tepid ahead of a long weekend in Japan. The market will be closed on Monday and Tuesday for public holidays.

The 20-year JGB yield JP20YTN=JBTC was flat at 0.390% while the 30-year yield JP30YTN=JBTC was also unchanged at 0.585%.

(Reporting by Tokyo Markets Team; Editing by Rashmi Aich)

((hideyuki.sano@thomsonreuters.com; +81 3 4563 2768;))

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