JGB 10-year yield hits 3-month high as Tokyo markets go 'risk-on'
TOKYO, Dec 26 (IFR) - Japanese government bond prices dipped and the 10-year yield hit a three-month high on Thursday as Tokyo markets switched into "risk-on" mode, with the Nikkei share average rising to a more than six-year peak and the yen on the defensive.
The 10-year yield was up 2 basis points at 0.710 percent, its highest level since Sept. 18, while the lead 10-year JGB futures contract fell 22 ticks to 143.61 to a three-month low.
The five-year yield was up 2 basis points at 0.230 percent, reaching a two-month high, even though the Bank of Japan, as expected, offered to buy 610 billion yen ($5.9 billion) worth of JGBs in the secondary market with residual maturities of no more than five years.
The 20-year yield added 1.5 basis points to 1.555 percent.
The Nikkei ended the morning session 0.9 percent higher, driven by buying mostly from retail investors as tax-free investment accounts aimed at driving Japanese savings into stocks kicked off.
The BOJ launched an aggressive stimulus programme in April, promising to inject $1.4 trillion into the economy in less than two years to help revitalise the economy and conquer deflation.
Earlier on Thursday, minutes of the BOJ's November meeting showed that policymakers broadly agreed the economic recovery will remain on track, but some expressed worry about the pace of growth.
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