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Japan government bond yields rise as BOJ trims debt purchase amount

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Yields on long-dated Japanese government bonds (JGB) rose on Friday after the Bank of Japan (BOJ) trimmed the amount of debt it offered to buy at a regular market operation.

[TOKYO] Yields on long-dated Japanese government bonds (JGB) rose on Friday after the Bank of Japan (BOJ) trimmed the amount of debt it offered to buy at a regular market operation.

Gains in Tokyo shares, which were up nearly half a per cent by early afternoon trade, also weighed on JGB prices.

The BOJ on Friday offered to purchase 160 billion yen (S$1.93 billion) of 10- to 25-year JGBs, down from 180 billion yen at the previous operation last week.

The central bank also trimmed its purchase of 25- to 40-year JGBs, reducing the amount it offered to buy to 40 billion yen compared to 50 billion yen previously.

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The BOJ often tweaks the amount of JGBs it purchases at its regular operations as part of its yield curve-controlling scheme.

The benchmark 10-year JGB yield gained half a basis point to minus 0.025 per cent.

The 20-year yield rose one basis point to 0.390 per cent.

The 30-year yield climbed two basis points to 0.575 per cent while the 40-year yield advanced 2.5 basis points, to 0.605 per cent.

Ten-year JGB futures were 0.01 points higher at 152.55, with a trading volume of 27,405 lots by early afternoon trade.

REUTERS