The Japanese government lost ground Thursday after the Bank of Japan (BoJ) delivered along the line of market expectations, keeping its monetary policy unchanged at the two-day meeting that concluded early today. The Bank has also revised its real gross domestic forecasts (GDP) higher at the meeting for the upcoming few fiscals.
The benchmark 10-year bond yield, which moves inversely to its price, remained tad higher at 0.07 percent, the long-term 30-year bond yields rose nearly 1 basis point to 0.87 percent and the yield on the short-term 2-year note traded flat at -0.10 percent by 04:00 GMT.
The BoJ maintained its short-term interest rate target at -0.1 percent and the 10-year JGB yield target around zero percent. Further, it also pushed back again the timing for achieving its 2 percent inflation target, with a pledge to buy JGBs so that its holdings increase at an annual pace of around JPY80 trillion.
The CB’s nine-member policy board also revised up its GDP forecast for FY2017-18, FY2018-19 and FY2019-20 to 1.8 percent, 1.4 percent and 0.7 percent, from 1.6 percent, 1.3 percent and 0.7 percent respectively.
Meanwhile, Japan’s Nikkei 225 traded 0.56 percent higher at 20,133.50, while at 04:00GMT and the FxWirePro's Hourly Yen Strength Index remained neutral at 6.34 (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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