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JGBs steady after Fed, BOJ meeting outcomes
September 21, 2017 / 7:19 AM / in a month

JGBs steady after Fed, BOJ meeting outcomes

TOKYO, Sept 21 (Reuters) - Japanese government bonds were steady on Thursday, after the Bank of Japan left its policy stance unchanged as expected.

Goushi Kataoka, a vocal advocate of aggressive easing who joined the board in late July, dissented in an 8-1 vote against the central bank’s view that current policy was sufficient to boost inflation to its 2 percent target. That potentially exposed a fresh rift in the board that could further delay any plan by the BOJ to dial back its massive stimulus.

The BOJ also maintained a loose pledge to keep buying bonds so its holdings increase at an annual pace of 80 trillion yen ($717.6 billion), diverting from the U.S. Federal Reserve’s plan to steadily pull back from crisis-era measures.

The 10-year cash JGB yield was flat at 0.025 percent, while the 10-year JGB futures contract finished down 0.01 point at 150.80.

In the superlong zone, the 20-year JGB yield inched down half a basis point to 0.545 percent, while the 30-year JGB yield fell half a basis point to 0.825 percent.

The Fed said on Wednesday it will begin to reduce its balance sheet from next month and indicated that one more rate increase by the end of the year remains possible despite a recent bout of low inflation.

After the Fed’s announcement, the 10-year U.S. Treasuries yield briefly rose to a six-week high of 2.289 percent.

Reporting by Tokyo markets team

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