Japanese bonds nearly flat in thin trade, all eyes on OPEC meeting

The Japanese government bonds traded nearly flat Monday, succumbing to thin trading activity during a relatively quiet session that witnessed data of little significance. Also, investors hold their positions ahead of the OPEC informal meeting this week in Algiers.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around -0.053 percent mark, the super-long 30-year note yield rose 1 basis point to 0.488 percent and the yield on short-term 2-year note remained steady at -0.219 percent by 06:30 GMT.

Investors remained keen to focus on the upcoming OPEC informal meeting this week in Algiers. It is uncertain that a deal can be reached on freezing or cutting output.

Bank of Japan Governor Kuroda at a meeting with business leaders in Osaka said that they are ready to use every possible policy tool if needed; there's no limit to monetary policy and the BoJ is likely to relentlessly pursue innovation. He said that he can accelerate monetary base expansion if necessary along with more asset purchases. The main tool for more easing is still deepening negative rate cuts and lowering long-term rate targets.

He further mentioned that the shape and locations of the yield curve will broadly remain as they are at present. Also, large-scale monetary easing will be in place until observed CPI stays above the 2 percent target in a stable manner.

Meanwhile, the benchmark Nikkei 225 closed down 1.25 percent at 16,544.56 and the broader Topix index closed 1.02 percent lower to 1,335.84 points.