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Japan's 10-year bond yield rises amid uncertainty about BOJ's bond buying plans
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Japan's 10-year bond yield rises amid uncertainty about BOJ's bond buying plans
Jul 10, 2024 12:01 AM

TOKYO, July 10 (Reuters) - Japan's 10-year government

bond yield rose on Wednesday amid uncertainties about the Bank

of Japan's (BOJ) bond buying plans.

The 10-year JGB yield rose 1.5 basis points

(bps) to 1.085%.

The BOJ said last month it would lay out a detailed

bond-tapering plan at its July 30-31 policy meeting, which will

cover a period of around one to two years.

The central bank on Tuesday released the outcome of a survey

it conducted with bond market participants to collect their

views on how the BOJ should scale down the buying.

"The views among the market players were so diversified that

it is hard to gauge what the consensus is going to be," said

Naoya Hasegawa, chief bond strategist at Okasan Securities.

Some respondents urged the BOJ to reduce its monthly bond

purchases to around 2 trillion yen ($12.39 billion) to 3

trillion yen from the current 6 trillion yen, while others

wanted a faster pace of tapering, the survey showed.

Yields on bonds with shorter maturities fell, supported by a

firm outcome of an auction for the five-year bonds in the

previous session.

"Investors are building positions for bonds with mid-term

maturities, while demand from life insurers for bonds with

super-long maturities is weak," said Okasan's Hasegawa.

The five-year yield fell 0.5 bp to 0.600% and

the two-year JGB yield fell 1 bp to 0.335%.

Yields on bonds with super-long maturities rose, with the

20-year JGB yield to 1.96%, its highest since May

2011 and was last up 1.5 bps at 1.955%.

The 30-year JGB yield rose 2 bps to 2.225%.

($1 = 161.4400 yen)

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