JGBs trade flat in muted session ahead of BoJ’s monetary policy decision, Governor Kuroda’s speech

The Japanese government bonds remained flat during Asian session Thursday amid a muted trading session that witnessed data of little economic significance. However, market participants will be awaiting the Bank of Japan’s (BoJ) 2-day monetary policy meeting, which is due to be concluded on March 15 for further direction in the debt market.

Also, the central bank’s Governor Haruhiko Kuroda will deliver a post-conference speech at 08:55GMT on the same day for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around -0.042 percent, the yield on the long-term 30-year barely slipped to 0.568 percent and the yield on short-term 2-year too edged tad lower to -0.157 percent by 04:30GMT.

According to a report from ANZ Research, "Although we don't anticipate any policy change from the central bank this week, we think it must be getting close to a tipping point in terms of considering easing policy more, rejigging its easing framework or rethinking its inflation goal."

"At the current level of the JPY, the BoJ may not be in a hurry to implement any further easing as it could be a wasted opportunity. If easing does become a higher priority, we think reinforcing forward guidance is probably the best option," the report added in its comments.

Meanwhile, the Nikkei 225 index traded tad 0.25 percent higher at 21,343.50, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -109.15 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex