Bonds News

Mid-to-long dated JGB yields rise after BOJ trims buying amount at operation

TOKYO, Sept 26 (Reuters) - Mid-to-long dated Japanese government bond yields rose on Thursday after the central bank reduced purchases of the JGBs maturing in five to ten years in an effort to put a floor under the declining yields.

The Bank of Japan (BOJ) said earlier in the day that it will reduce its purchase of JGBs with five to ten years to maturity to 350 billion yen ($3.25 billion), from 380 billion yen previously, at its regular buying operation.

Benchmark 10-year JGB futures fell 0.10 point to 155.24, with a trading volume of 23,395 lots by late afternoon trade.

The 10-year cash JGB yield rose 1.5 basis points to minus 0.245%.

At the shorter end of the curve, the two-year yield rose 1.5 basis points to minus 0.330%, while the five-year yield rose 1.5 basis points to minus 0.370%.

In the super-long zone, the 20-year yield fell half a basis point to 0.170% and the 30-year yield fell one basis point to 0.345%, while the 40-year yield was flat at 0.420%.

The BOJ kept its monetary policy steady last Thursday but signalled the chance of expanding stimulus as early as its next policy meeting in October by issuing a stronger warning against overseas risks. ($1 = 107.6700 yen) (Reporting by the Tokyo Markets Team; Editing by Aditya Soni)