TOKYO, June 16 (Reuters) - Japanese government bonds
(JGBs) fell on Monday, tracking declines in U.S. Treasuries on
Friday, as investors awaited market-moving cues such as the Bank
of Japan's (BOJ) decision on its bond tapering.
The five-year JGB yield and the 10-year JGB
yield rose four basis points (bps) to 1.005% and
1.44%, respectively.
Yields and prices of bonds move inversely.
The BOJ is expected to announce a slower pace of reductions
in its bond purchases from the next fiscal year at the end of a
two-day policy meeting on Tuesday.
In addition to the BOJ's decision, the market awaits a
five-year bond auction, as well as a meeting of primary dealers,
which would affect demand for JGBs, said Naoya Hasegawa, chief
bond strategist at Okasan Securities.
The BOJ is under pressure from JGB investors to slow the
pace of its tapering following a surge in yields on
super-long-dated bonds.
The market also expects the Ministry of Finance to cut the
sale of such bonds after it gauges opinions from bond dealers,
strategists said.
"We can say the JGB yields rebounded from their declines
last week, after the market saw rises in U.S. Treasury yields,"
Hasegawa said.
U.S. Treasury yields rose Friday after Israel's strike on
Iran shocked markets, pushing oil prices higher and pressuring
stocks.
The 20-year JGB yield rose 3 bps to 2.375%
and the 30-year JGB yield rose 2.5 bps to
2.905%.