TOKYO, April 3 Yields on benchmark 10-year
Japanese government bonds inched down on Wednesday ahead of the
outcome of Bank of Japan's two-day meeting on Thursday, though
superlongs underperformed, giving up some of the previous
* The 10-year yield ticked down 0.5 basis
point to 0.555 percent, not too far from a near-decade low of
0.510 percent reached last week.
* Ten-year JGB futures rose 0.12 point to 145.48.
The futures hit a record high of 145.98 last week.
* "The JGB yield curve will be dictated by the BOJ. It's
pretty much like what the Fed is doing to the curve," said Shogo
Fujita, chief Japan bond strategist at Bank of America Merrill
"I think people are putting too much attention to the
meeting this week. The anticipated aggressive easing by (BOJ
Governor Haruhiko) Kuroda is a multi-month move. It will take
time to implement. It's not going to come overnight."
* Many market players expect the BOJ to increase its bond
buying and extend the maturity of its bond purchases, though
there is no clear consensus as to exactly what the central bank
* Fujita said he expected Kuroda will embark on an
unprecedented level of monetary easing, leaving little room for
JGB yields to rise. "It's going to overwhelm every single
investor out there," he said.
* Longer maturities underperformed after their strong
showing in the previous session. The 30-year yield
crept up 0.5 basis point to 1.515 percent, just
shy of its near-decade trough of 1.500 percent touched on March
* The 20-year yield also edged up 0.5 basis
point, to 1.390 percent. It hit a near-decade low of 1.360
percent last Friday.