JGBs gain across maturities on BOJ disappointment, in line with U.S. Treasuries

Credit: REUTERS/© Shohei Miyano / Reuters

Japanese government bond (JGB) prices rose on Friday, tracking firmer U.S. Treasuries, with longer-dated bonds gaining sharply as the Bank of Japan (BOJ) did not hint on any concrete measures to steepen the yield curve at its policy meeting.

TOKYO, Nov 1 (Reuters) - Japanese government bond (JGB) prices rose on Friday, tracking firmer U.S. Treasuries, with longer-dated bonds gaining sharply as the Bank of Japan (BOJ) did not hint on any concrete measures to steepen the yield curve at its policy meeting.

Benchmark 10-year JGB futures 2JGBv1 rose 0.45 point to 154.40, with a trading volume of 30,632 lots.

The 10-year cash JGB yield JP10YTN=JBTC fell 4 basis points to minus 0.185%.

In the super-long zone, the 20-year yield JP20YTN=JBTC 3.5 basis points to 0.190%, while the 30-year JP30YTN=JBTC and the 40-year yields JP40YTN=JBTC fell 4.5 basis points each to 0.340% and 0.375%, respectively.

Meanwhile, the two-year JGB yield JP2YTN=JBTC fell 3.5 basis points to minus 0.275% and the five-year yield JP5YTN=JBTC fell 4.5 basis points to minus 0.310%.

The BOJ kept monetary policy steady on Thursday as expected but gave the strongest signal to date that it may cut interest rates in the near future.

Regarding excessive declines in super-long JGB yields, Governor Haruhiko Kuroda said "if the yield curve flattens too much, we can tweak our market operations" such as further slowing the BOJ's purchases of super-long bonds.

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

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