June 24, 2019 / 5:55 AM / a month ago

JGBs slip on profit-taking after 10-year yield nears BOJ policy band

TOKYO, June 24 (Reuters) - Japanese government bond prices edged lower on Monday as investors continued to take profit after a recent rally that took yields to lowest levels in almost three years.

The 10-year JGB yield rose 1.5 basis points to minus 0.155%, after having fallen to as low as minus 0.195%, its lowest in almost three years, in the previous session.

Although Bank of Japan Governor Haruhiko Kuroda said last week that he would not be too strict about keeping the 10-year yield within the official target of 20 basis points above or below zero percent, buyers turned cautious as the 0.20% mark had come within reach.

The 10-year benchmark JGB futures dropped 0.13 point to 153.80, from a record high of 154.13 touched last week.

The 20-year JGB yield rose 2.0 basis points to 0.215% , pulling further away from Friday’s low of 0.145%, while the 30-year JGB yield rose 2.5 basis points to 0.345%.

Investors are waiting to see whether the Bank of Japan will reduce its bond buying in planned bond buying operations on Wednesday and Friday.

Many investors expect yields to fall further in the long run, given major global central banks are likely to cut interest rates after the U.S. Federal Reserve signalled it plans to ease its policy later this year. (Reporting by Tokyo Markets Team; Editing by Subhranshu Sahu)

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