Benchmark JGBs steady; superlong end weakens as BOJ buys less

Wed Feb 26, 2014 4:40am EST

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TOKYO, Feb 26 (IFR) - Benchmark Japanese government bonds were steady on Wednesday, while superlong tenors weakened as the Bank of Japan bought less than usual in that zone in its purchasing operations.

The yield on 10-year JGBs was flat on the day at 0.585 percent.

The 20-year yield added half a basis point to 1.45 percent, while the 30-year yield rose 1 basis point to 1.635 percent.

The BOJ announced its JGB purchasing operations in the morning as expected, but reduced the size of its normal buying of 200 billion yen ($1.96 billion) in the superlong tenor by 20 billion yen.

Some market participants speculated that the BOJ reduced its superlong purchases because the average duration of the central bank's bond holdings as of the end of January was 8.3 years, longer than the bank's target of 6 to 8 years.

JGB futures opened firmer and hit a session high of 145.26 in the morning, but skidded to a session low of 145.07. They closed flat on the day at 145.18.

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