JGB yields fall as traders brace for Fed, BOJ meetings

Credit: REUTERS/THOMAS WHITE

Yields on Japanese government bonds fell on Wednesday, as traders trimmed long positions ahead of a U.S. Federal Reserve policy decision later in the day and a Bank of Japan (BOJ) meeting on Thursday.

By Stanley White

TOKYO, Oct 30 (Reuters) - Yields on Japanese government bonds fell on Wednesday, as traders trimmed long positions ahead of a U.S. Federal Reserve policy decision later in the day and a Bank of Japan (BOJ) meeting on Thursday.

The Fed is widely expected to cut interest rates for the third time this year due to sluggish inflation, but there is speculation that the U.S. central bank will signal its reluctance to cut rates further.

The BOJ is likely to keep monetary policy steady, but the decision could be a close call as central bankers grapple with the risks posed by prolonged U.S.-China trade war.

Benchmark 10-year JGB futures 2JGBv1 rose 0.17 point to 153.84, bouncing off a three month low reached on Tuesday.

The 10-year JGB yield JP10YTN=JBTC fell 1.5 basis points to minus 0.130%, pulling back from a 20-week high set on Tuesday.

The 20-year JGB yield JP20YTN=JBTC fell 2 basis points to 0.250%, while the 30-year JGB yield JP30YTN=JBTC fell 2 basis points to 0.400%.

The five-year yield JP5YTN=JBTC fell 1 basis point to minus 0.250%.

At the short end f the curve, the two-year JGB yield JP2YTN=JBTC fell 1 basis point to minus 0.220%.

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

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

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