March 5, 2018 / 4:22 AM / in a year

JGBs rebound as traders look beyond Kuroda's policy exit comments

TOKYO, March 5 (Reuters) - Japanese government bond prices gained on Monday, as traders looked beyond the initial pressure after Bank of Japan’s Governor Haruhiko Kuroda hinted at a possible exit from its ultra-easy policies if inflation hits its target in its fiscal 2019.

The benchmark 10-year JGB futures posted their biggest fall in two months on Friday after Kuroda’s comments.

His comments, coming just before the session close, had prompted traders to sell JGB futures.

Many market players, however, agree that the initial reaction to Kuroda’s comments was aggressive, given that no economists expected Japan’s consumer price inflation to reach the 2 percent target set by BOJ.

The benchmark futures rose 0.29 point to 151.00, more than offsetting its 0.24 point fall on Friday.

The 10-year cash JGB yield fell 1.5 basis points to 0.050 percent, while the 20-year JGB yield fell 1.0 basis point to 0.545 percent. (Reporting by Tokyo Markets Team, Editing by Sherry Jacob-Phillips)

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