JGBs steady as BOJ begins two-day policy meeting
TOKYO, Aug 7 (IFR) - Japanese government bond prices were mostly steady on Thursday as the Bank of Japan began its regular two-day policy meeting, at which the central bank is expected to maintain its massive asset purchases and its optimistic view on the economic outlook.
After recent downbeat data, some policymakers might propose offering a bleaker view on exports and output than given in the July assessment.
But overall, the BOJ is not expected to change its policy framework, under which it has pledged to increase base money by 60-70 trillion yen ($585-$683 billion) per year through aggressive asset purchases, largely of JGBs, in a bid to reflate the economy.
Underpinning JGBs, the benchmark 10-year German Bund yield broke below July 2012's record low of 1.17 percent overnight to fall as low as 1.092 percent, on a weaker economic outlook against a backdrop of escalating concerns about the risk of escalating conflict in the Ukraine, involving Russia.
Yields on the current 2-year, 10-year and 20-year JGBs were unchanged from the previous session at 0.065 percent , 0.515 percent and 1.380 percent , respectively, while the 30-year yield inched up half a basis point to 1.685 percent.
Ten-year lead September JGB futures were up 0.02 point in afternoon trade at 146.05, after finishing at midday at 146.09. (Reporting by Masatsugu Hisatsune; Editing by Simon Cameron-Moore)