JGBs slip after BoJ cuts purchases of 5-10 year maturities, ease in Italy’s political tension

Japanese government bonds slipped during late Asian session Friday after the Bank of Japan cut is debt purchases maturing in 5-10 years amid an ease in Italy’s political tension, which weighed on bond prices

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose nearly 1 basis point to 0.03 percent, the yield on the long-term 30-year note tad higher at 0.72 percent and the yield on short-term 1-year traded 1/2 basis point at -0.13 percent by 05:25GMT.

The BoJ has reduced the purchases of JGBs maturing in 5-10 years to JPY430 billion from the previous JPY450 billion.

Bonds remained lower after Italian leaders moved to mitigate political turbulence and avoid a potentially disruptive early election, reducing safe-haven bids in bonds.

Prime Minister-designate Carlo Cottarelli said possibilities had emerged "for the birth of a political government" and that financial market turmoil and other circumstances, "have caused me to wait for further developments".

Meanwhile, the Nikkei 225 index rose 0.16 percent to 22,238.50 by 05:30 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -14.71 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest