JGBs edge lower, focus on BOJ's view of economy

By Masayuki Kitano

TOKYO, Dec 20 (Reuters) - Japanese government bonds edged lower on Thursday, taking a breather after the previous day's rally, as investors waited to see whether the Bank of Japan tones down its outlook on the economy.

Investors were also awaiting the vote tally of the central bank's interest rate decision due later in the day.

The BOJ is widely expected to keep interest rates unchanged at 0.5 percent at a two-day policy meeting that ends on Thursday, and the focus is on whether there will be any change in the 8-1 vote count that has held since July.

"One point to watch will be whether there will be a dissenting vote," said Junji Kojima, senior deputy manager for Sompo Japan Insurance's global securities investment department. "I think that will be a barometer that will offer an indication of the atmosphere on the inside," Kojima said, alluding to discussions among BOJ policy members.

March 10-year JGB futures fell 0.19 point to 136.77 2JGBv1, giving back some of its 0.31 point gain on Wednesday.

The benchmark 10-year yield rose 2 basis points to 1.510 percent <JP10YTN=JBTC>.

BOJ board member Atsushi Mizuno has dissented against the board's decisions to keep interest rates unchanged in six straight policy meetings since July.

Besides the vote tally, investors will be focusing on remarks by BOJ Governor Toshihiko Fukui at a post-meeting news conference and the contents of the central bank's monthly report.