TOKYO, March 27 Japanese government bond prices
gained on Wednesday with the yield on benchmark 10-year debt at
a near-decade low on expectations that the Bank of Japan will
soon buy longer-dated paper to revive the economy.
BOJ Governor Haruhiko Kuroda told parliament on Tuesday that
the central bank will seek to push down market interest rates by
buying longer-dated JGBs among future policy options. The
central bank will hold its next policy-setting meeting on April
3 and 4.
The 10-year yield slipped 1.5 basis points to
0.525 percent, matching its lowest level since June 2003 reached
Ten-year JGB futures added 4 ticks to 145.83 after
touching a record high of 145.95 in the previous session.
"The market is slightly overpriced. The market may touch 50
basis points in the near future because of the BOJ purchases," a
fixed-income fund manager at a Japanese asset management firm in
Still, he said he expected next Tuesday's auction of 2.4
trillion yen ($25.5 billion) worth of 10-year bonds would meet
"Final investors will not participate. Probably primary
dealers will cover their shorts. The auction may be supported,"
"But the point is that I don't think final investors can
accept 50 basis points for 10-year bonds. It's too low. Kuroda
is declaring an inflation target of 2 percent. Obviously, it's a
The 20-year yield eased 1 basis point to
1.450 percent, hovering near its near-decade low of 1.410
percent hit in the previous session.
The 30-year yield, however, underperformed,
adding 1.5 basis points to 1.605 percent, further backing off
its near-decade trough of 1.545 percent tugged on Tuesday.
"I don't think the main buyers (of the superlong sectors),
the life insurance companies, can accept these levels," the fund