Bonds News

JGB superlong yields jump to over 1-year high as BOJ adjusts buying

TOKYO, July 1 (Reuters) - Japanese government bond yields rose on Wednesday, in some cases to more than one-year highs, after the Bank of Japan (BOJ) said it would not increase purchases of superlong maturities.

Investors were also cautiously awaiting a 10-year debt auction.

The BOJ said on Tuesday it would increase buying of JGBs with up to 10 years to maturity, but will maintain its purchases of superlong bonds at previous levels.

Market participants said that while the BOJ’s announcement was expected, the central bank’s stance on superlong maturities prompted yields to rise.

Benchmark 10-year JGB futures fell 0.21 point to 151.74, with a trading volume of 20,386 lots.

In the cash bond market, the 10-year JGB yield added 2 basis points to 0.045%, the highest since June 8.

The Ministry of Finance plans to sell 2.6 trillion yen of 10-year government bonds on Thursday.

The five-year yield rose 1 basis point to minus 0.095%.

The 20-year JGB yield added 2.5 basis points to 0.435%, while the 30-year JGB yield gained 3 basis points to 0.630%, both marking their highest levels since March 2019.

The 40-year JGB yield jumped 3.5 basis points to 0.665%, also the highest since March 2019.

Bucking the overall trend, the two-year JGB yield inched down half a basis point to minus 0.145%. (Reporting by Tokyo Markets Team; Editing by Kim Coghill)