JGBs remain modestly lower post BoJ’s unchanged monetary policy decision

The Japanese government bonds traded modestly lower Friday after the Bank of Japan (BoJ) maintained its benchmark interest rate unchanged at its 2-day monetary policy meeting, concluded early today.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.05 percent, the long-term 30-year bond yields rose nearly 1 basis point to 0.80 percent and the yield on the short-term 3-year note traded 1/2 basis point higher at -0.10 percent by 04:50 GMT.

The BoJ held monetary policy steady in its June board review, pledging to keep asset purchases around the current target of JPY80 trillion (USD727 million) and sounding more upbeat on the economy, according to a release on Friday at the end of a two-day meeting.

The central bank raised its economic assessment. It increased its real gross domestic product (GDP) growth forecast for the 2017-18 fiscal year to 1.6 percent from the 1.5 percent projected in January. But it lowered its core consumer price index (CPI) growth forecast to 1.4 percent from 1.5 percent in the same period.

Lastly, the BoJ Governor Haruhiko Kuroda will hold a press conference at 06:30 GMT to discuss the deliberations of the central bank board.

Meanwhile, Japan’s Nikkei 225 traded 0.74 percent higher at 19,979.50 by 05:00GMT and the FxWirePro's Hourly Yen Strength Index remained neutral at -126.82 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex