September 6, 2018 / 6:26 AM / 17 days ago

Longer-dated JGBs gain as BOJ bond buying as expected

TOKYO, Sept 6 (Reuters) - Longer-dated Japanese government bond prices rose on Thursday after a Bank of Japan’ bond buying operation pointing to a small cut in monthly bond buying was perceived to be in line with market expectations.

Ten-year JGB futures firmed 0.07 point to 150.39 with a trading volume of 49,591 lots.

The Bank of Japan offered to buy 450 billion yen ($4 billion) of JGBs with more than five to 10 years to maturity on Thursday, reinforcing views that it is likely to trim purchases this month as it slowly scales back its massive asset buying.

But the market largely shrugged off that move as traders had already anticipated it and also as the reduction was relatively small in light of the BOJ’s overall bond buying scheme.

The benchmark 10-year cash JGB yield dropped 0.5 basis point to 0.105 percent.

The 20-year yield and the 30-year JGB yield fell half a basis point each to 0.610 percent and 0.840 percent, respectively.

The 40-year yield fell 1 basis point to 0.970 percent.

The two-year yield gained 0.5 basis point at minus 0.115 percent while the five-year yield was unchanged at minus 0.075 percent. ($1 = 111.17 yen) (Reporting by Tokyo Markets Team; Editing by Gopakumar Warrier)

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