October 24, 2018 / 5:41 AM / 21 days ago

JGBs edge higher after BOJ makes no specific mention of bond buying tweaks

TOKYO, Oct 24 (Reuters) - Japanese government bond prices rose on Wednesday after the Bank of Japan did not make any specific references to possible tweaks in its bond buying operation at a meeting with market players the previous day.

Market players had been wary of the chances that the central bank could indicate a plan to change its market operation style to help make the market more volatile.

The BOJ’s bond purchase on Wednesday also showed limited selling interest from brokers, further underpinning the market already supported by firmer U.S. Treasuries and fall in global equity prices.

Ten-year JGB futures advanced 0.12 point to 150.41 while the yield on the current 10-year cash JGBs fell 1 basis point to 0.135 percent, a three-week low.

The 20-year JGB yield and the 40-year JGB yield both dipped 1.5 basis point to 0.665 percent and 1.060 percent, respectively.

The 30-year JGB yield dropped 1.0 basis point to 0.895 percent.

The five-year JGB yield lost half a basis point to minus 0.060 percent, while the two-year JGB yield was untraded.

The BOJ maintained the size of its bond purchase in its operation on Wednesday. Its buying of 5- to 10-year JGBs in particular drew limited selling, helping support the market.

Benchmark U.S. Treasury yields fell to their lowest in almost three weeks on Tuesday after a rout in global equity markets fed investor demand for low-risk debt.

Reporting by Tokyo Markets team; Editing by Amrutha Gayathri

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