JGBs gain as firm BOJ operation results trigger bargain hunting

[TOKYO] Japanese government bond prices gained on Friday on bargain-hunting following strong results of the Bank of Japan's debt-buying operation.

The benchmark 10-year yield was down 2.5 basis points at minus 0.075 per cent, after spiking to a two-week high of minus 0.030 per cent.

JGBs were sold broadly the previous day as investors recorded profits to spruce up their books on the last day of the domestic fiscal year.

The BOJ bought a total of 520 billion yen (S$6.26 billion) of JGBs on Friday as part of its regular debt-purchasing scheme.

The market usually draws relief when the BOJ's bid to buy a certain amount of bonds is met with enough offers, as that shows the central bank's easing scheme to pump the market with money is working.

JGBs were also supported as Tokyo's Nikkei fell more than 3 per cent as a downbeat BOJ "tankan" survey of business confidence sapped risk appetite.

REUTERS