JGB yields edge higher on vaccine hopes; BOJ keeps monetary policy steady


By Stanley White

TOKYO, July 15 (Reuters) - Japanese government bond yields edged higher on Wednesday, after the Bank of Japan kept monetary policy on hold and as investors focused on positive results from an early-stage trial of a coronavirus vaccine.

Sentiment for fixed income also weakened as growing signs of economic recovery prompted investors to shift money to equities from the safety of holding government debt.

Benchmark 10-year JGB futures 2JGBv1 fell 0.03 point to 152.11, with a trading volume of 9,509 lots.

The 10-year JGB yield JP10YTN=JBTC rose 0.5 basis point to 0.025%, while the 20-year JGB yield JP20YTN=JBTC rose 1 basis point to 0.430%.

The 30-year JGB yield JP30YTN=JBTC rose 1 basis point to 0.600%.

In the middle of the yield curve, the five-year yield JP5YTN=JBTC rose 0.5 basis point to minus 0.105%.

At the short end, the two-year JGB yield JP2YTN=JBTC was unchanged at minus 0.145%.

The BOJ kept monetary policy steady on Wednesday and maintained its view that the economy would gradually emerge from the coronavirus pandemic's devastating blow, signalling a pause after delivering stimulus twice so far this year.

Japanese government bond prices were also under pressure after a study showed Moderna Inc's MRNA.O experimental coronavirus vaccine is safe and produced an immune response in healthy volunteers.

(Reporting by the Tokyo markets team; Editing by Rashmi Aich)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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