April 21, 2017 / 5:40 AM / in 9 months

JGBs erase earlier losses, response to BOJ bond-buying muted

TOKYO, April 21 (Reuters) - Japanese government bond prices were little changed on Friday, having erased earlier losses when the Bank of Japan’s buying in long-dated bonds attracted limited selling.

The yield on the 10-year cash JGBs stood flat at 0.010 percent, not far from five-month low of zero percent touched earlier this week.

The price of 10-year JGB futures was up 0.02 point at 151.13 after a fall to 151.02 in earlier trade, which had taken its cue from a fall in U.S. Treasuries.

The BOJ’s buying of 10-25 year and 25-40 year JGBs attracted selling of less than three times the BOJ’s buying. So far this month, the BOJ’s buying in those maturities has mostly drawn offers of more than three times amount sought by the BOJ.

Following the operation, the 20-year yield fell 0.5 basis point to 0.540 percent, its lowest since early December.

The 30-year yield dropped 0.5 basis point to 0.740 percent .

The market has been supported since a U.S. missile attack on a Syrian government airfield earlier this month raised worries about further escalation in tensions in the Middle East, compounded by heightened tensions around North Korea. (Reporting by Tokyo Markets Team)

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