June 29, 2018 / 4:14 AM / a year ago

JGBs edge lower, weighed by sagging Treasuries

TOKYO, June 29 (Reuters) - Japanese government bond prices edged lower on Friday as the market was weighed by an overnight retreat in U.S. Treasuries, although shaky domestic stocks limited the losses.

The five-year and 20-year JGB yields rose by half a basis point to minus 0.110 percent and 0.500 percent , respectively.

The market showed little response to the Bank of Japan trimming the amount of five- to 10-year JGBs it offered to buy at a regular debt-purchasing operation on Friday to 410 billion yen ($3.71 billion) from the previous 430 billion yen.

The BOJ often tweaks the amount of JGBs it buys at its operations as a part of its yield curve control (YCC) scheme.

The benchmark 10-year JGB yield has moved between 0.020 percent and 0.095 percent this year and it has recently drifted towards the lower end of this band.

The BOJ may have trimmed the amount of JGBs it bought on Friday but the central bank is expected to remain committed to its ultra-easy monetary policy for the foreseeable future.

BOJ Deputy Governor Masazumi Wakatabe told Reuters in an interview on Thursday that the central bank does not need to adjust policy right now because the benefits of the YCC outweigh any side-effects. ($1 = 110.5100 yen) (Reporting by the Tokyo markets team; Editing by Gopakumar Warrier)

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