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Yields on 10-year JGBs inch lower ahead of BOJ’s policy review | Reuters

Yields on benchmark 10-year Japanese government bonds edged down on Monday, as investors held their bets ahead of the Bank of Japan’s (BOJ’s) policy review meeting this week.

Pension funds are buying Japanese government bonds to rebalance their portfolios ahead of the March fiscal year end, pushing the bond prices higher, a market participant said.

The 10-year JGB yield fell 0.5 basis point to 0.105%.

The BOJ may tweak a three-tier deposit system at its two-day policy review, ending on Friday, to exempt a larger portion of reserves from negative interest rates, said sources familiar with its thinking.

The two-year JGB yield fell one basis point to minus 0.140%, while the five-year yield fell one basis point to minus 0.090%.

The 20-year JGB yield was unchanged at 0.490%.

The 30-year JGB yield rose 1 basis point to 0.675% and the 40-year JGB yield rose 1.5 basis points to 0.715%.

Benchmark 10-year JGB futures rose 0.08 point to 151.07, with a trading volume of 15,985 lots. (Reporting by Tokyo markets team; Editing by Rashmi Aich)

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