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)