JGBs inch down, tread water after BOJ holds steady
TOKYO, May 21 (IFR) - Benchmark Japanese government bonds slipped slightly, pushing yields higher, but JGBs mostly shrugged off the Bank of Japan's widely expected decision to maintain policy and its upbeat economic assessment.
The BOJ also upgraded its view on capital expenditures at the end of its two-day meeting.
Bank of Japan Governor Haruhiko Kuroda will give his post-meeting comments from 3:30 p.m. Tokyo time (0630 GMT).
The central bank did not offer to buy any JGBs under its massive easing programme in the morning session, as it typically refrains from purchases on days when policy meetings or major JGB auctions are scheduled.
The yield on the benchmark 10-year JGB added half a basis point by the end of morning trading to 0.590 percent.
The yield on the current 5-year JGBs was unchanged from the previous session at 0.185 percent.
In the superlong zone, the 20-year yield was flat at 1.455 percent, while the 30-year JGB was yet to be actively priced by brokers.
Ten-year lead June JGB futures were flat on the day at 145.24 in early afternoon trade, after moving in a narrow 145.20-145.29 range in the morning session before finishing midday down 0.03 point at 145.21.
Japanese trade data for April released early in the session showed that the country posted a record 22nd month of trade deficits. While last month's rise in exports beat forecasts, shipments to the key U.S. market slowed. (Reporting by Masatsugu Hisatsune; Editing by Richard Borsuk)