JGBs slightly down in quiet trade as BOJ holds steady

Reuters

TOKYO, Oct 31 (IFR) - Japanese government bond prices easedslightly on Thursday in relatively quiet trading after the Bankof Japan kept its monetary policy steady as expected.

A rebound in U.S. Treasury yields overnight had somenegative impact on JGBs. In the morning session, severalregional banks continued to sell 5-year to 10-year JGBssporadically, while a few domestic lifers bought 13-year JGBs insmall lots to average down costs.

The BOJ did not offer to buy JGBs in the secondary marketunder its JGB buying program, as the central bank held itsone-day policy board meeting.

By a unanimous vote, the BOJ maintained its pledge toincrease Japan's monetary base by 60-70 trillion yen ($611.34billion-$713.23 billion) a year.

As usual, one large nationwide public pension fund wasbuying JGBs across the curve today and was expected to makefurther purchases on Friday for its turn-of-the-month durationadjustments, market participants said.

In early afternoon trading, the yield on the current 5-yearJGBs was up 0.5 basis point from Wednesday at 0.20percent, while the 10-year yield also rose bythat amount to 0.590 percent

In the superlong zone, the 20-year yield wasup 0.5bp at 1.480 percent, while the 30-year yield added 1 basis point to 1.620 percent.

Lead December JGB futures slipped 0.05 point to145.07. Earlier, they moved in a 145.03-145.14 range beforefinishing the morning session down 0.02 point at 145.10.

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