JGB yields edge higher on vaccine hopes; BOJ keeps monetary policy steady
TOKYO, July 15 (Reuters) – Japanese government bond yields edged higher on Wednesday, after the Bank of Japan kept monetary policy on hold and as investors focused on positive results from an early-stage trial of a coronavirus vaccine.
Sentiment for fixed income also weakened as growing signs of economic recovery prompted investors to shift money to equities from the safety of holding government debt.
Benchmark 10-year JGB futures fell 0.03 point to 152.11, with a trading volume of 9,509 lots.
The 10-year JGB yield rose 0.5 basis point to 0.025%, while the 20-year JGB yield rose 1 basis point to 0.430%.
The 30-year JGB yield rose 1 basis point to 0.600%.
In the middle of the yield curve, the five-year yield rose 0.5 basis point to minus 0.105%.
At the short end, the two-year JGB yield was unchanged at minus 0.145%.
The BOJ kept monetary policy steady on Wednesday and maintained its view that the economy would gradually emerge from the coronavirus pandemic’s devastating blow, signalling a pause after delivering stimulus twice so far this year.
Japanese government bond prices were also under pressure after a study showed Moderna Inc’s experimental coronavirus vaccine is safe and produced an immune response in healthy volunteers.
Source: Read Full Article