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JGBs flat, little reaction to steady BOJ rates, forecasts
July 15, 2014 / 3:55 AM / 3 years ago

JGBs flat, little reaction to steady BOJ rates, forecasts

TOKYO, July 15 (Reuters) - Japanese government bond prices were mostly unchanged across the curve on Tuesday, with a bounce in Tokyo shares stalling a recent surge that took yields to the year’s lows.

The bond market’s reaction to the Bank of Japan holding pat on monetary policy was limited, as the outcome had been well anticipated.

The BOJ kept monetary policy steady on Tuesday and slightly trimmed its economic growth forecast for the current fiscal year. The central bank also left unchanged its consumer inflation forecasts in a quarterly review of its long-term projections.

A wait-and-see mood prevailing among bond market participants ahead of Federal Reserve Chair Janet Yellen’s congressional testimony later in the day also limited JGB market activity.

Yellen, who will deliver the latest report to Congress on monetary policy, could take a hawkish stance on raising interest rates in response to strong June jobs data, analysts and investors said.

The benchmark 10-year JGB yield was untraded on the broker-to-broker screens after finishing the previous day at 0.535 percent. The yield was not too far from 0.530 percent touched on Friday, the lowest since April 2013.

The 20-year yield was flat at 1.400 percent. (Reporting by Shinichi Saoshiro; Editing by Eric Meijer)

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