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JGB yields inch down after BOJ chief offers few hints on rate hike
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JGB yields inch down after BOJ chief offers few hints on rate hike
Nov 18, 2024 10:09 PM

TOKYO, Nov 19 (Reuters) - Japanese government bond

yields inched down on Tuesday, as investors were relieved after

the Bank of Japan chief did not provide a decisive hint on the

timing of the next interest rate hike.

The 10-year JGB yield fell 0.5 basis point

(bp) to 1.065%. The 20-year JGB yield fell 0.5 bp

to 1.890%.

BOJ Governor Kazuo Ueda on Monday offered few clues on

whether the BOJ would raise rates in December. Ueda spoke at a

news conference on Monday, saying the economy was progressing

towards sustained wages-driven inflation and warned against

keeping borrowing costs too low.

"Ueda's comments were rather dovish," said Katsutoshi

Inadome, senior strategist at Sumitomo Mitsui Trust Asset

Management.

"Some in the market had expected that Ueda would announce

the rate hike in December on Monday."

Overnight Index Swap (OIS) on Tuesday indicated a 46.46%

chance of the BOJ raising rates to 0.5% in December, down from

more than a 50% chance last week.

A weaker yen drives expectations for the rate hike.

Investors expected the BOJ to provide clear hints before the

policy shift as the central bank was blamed for the market

turmoil in August after its surprise rate hike in July, Inadome

said.

The 30-year JGB yield fell 1.5 basis points

to 2.285%.

Yields on the shorter-end of the curve were flat, with the

two-year JGB yield unchanged at 0.55%. The

five-year yield was flat at 0.700%.

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