Japanese government bonds traded narrowly mixed on Monday after Bank of Japan Governor Haruhiko Kuroda reiterated the central bank will continue to keep its yield curve control (YCC) unchanged near zero until 2 percent inflation is achieved. However, the benchmark 10-year yield rose following this positive comment on economy and inflation.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 0.078 percent, the yield on the long-term new 40-year note dipped nearly 1 basis point to 0.995 percent and the yield on short-term 2-year remained flat at -0.132 percent by 04:20 GMT.
According to Reuters report, Bank of Japan Governor Haruhiko Kuroda on Monday reiterated the central bank’s resolve to maintain quantitative easing, but his positive comments on inflation and the economy sent the yen to a four-month high versus the dollar. The USD/JPY fell 0.30 percent to 110.74 by 04:10GMT.
Kuroda also added that the BoJ will continue its aggressive easing, composed of yield curve control and a massive asset-buying program, for as long as needed to achieve its price target.
Moreover, the BoJ bought JPY410 billion of 5-10 year JGBs in today's operation, JPY190 billion worth of bonds of 10-25 years of maturity and JPY80 billion worth of bonds of more than 25 years of maturity.
Meanwhile, the Nikkei 225 index traded 0.31 percent higher at 23,727.50 by 04:25GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -17.97 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
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