TOKYO, Dec 21 (Reuters) - Japanese government bond prices slipped across the board on Thursday, as Treasuries retreated on prospects of the U.S. tax overhaul leading to higher debt issuance and more aggressive rate hikes.
The five-year JGB yield rose 1 basis point to minus 0.095 percent and the 10-year yield was 1.5 basis points higher at 0.065 percent, its highest since Nov. 1.
The JGB market showed little reaction to the Bank of Japan’s well anticipated decision on Thursday to stand pat on the monetary policy.
Investors awaited the post-policy meeting news conference by BOJ Governor Haruhiko Kuroda at 0630 GMT to see whether the central bank chief would touch up on the concept of a “reverse rate,” a level at which low interest rates are seen starting to have more harmful side-effects than benefits.
Kuroda talked about the reverse rate in November, causing some to speculate that the BOJ is looking to eventually begin winding back its massive monetary stimulus under which long-term interest rates have fallen close to zero percent. (Reporting by the Tokyo markets team; Editing by Amrutha Gayathri)