JGBs slip on BOJ buying operation; focus on U.S. Fed meeting

TOKYO, June 10 (Reuters) – Japanese government bond prices fell on Wednesday as the Bank of Japan (BOJ) conducted a regular debt-purchasing operation for monetary policy, while investors awaited the outcome of the U.S. Federal Reserve’s meeting.

Later in the day, the Federal Open Market Committee will publish its first economic projections since the coronavirus pandemic set off a recession in February.

Some market participants speculate that the U.S. central bank might adopt yield targets on bonds, or some other measures to anchor long-term yields.

Benchmark 10-year JGB futures fell 0.03 point to 151.93, with a trading volume of 35,422 lots, while the 10-year JGB yield went up half a basis point to 0.020%.

At the shorter end of the market, the two-year JGB yield inched up half a basis point to minus 0.160%, while the five-year yield rose 1 basis point to minus 0.100%.

In the super-long zone, the 20-year JGB yield bucked the trend and dropped half a basis point to 0.370%, while the 30-year JGB yield and the 40-year JGB yield were unchanged at 0.535% and 0.555%, respectively. (Reporting by Eimi Yamamitsu; Editing by Rashmi Aich)

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