Yield on 10-year JGB hits 1-week high as BOJ’s Kuroda keeps upbeat view on growth

The yield on 10-year Japanese government bonds hit 1-week high on Friday following upbeat comments from Bank of Japan Governor Haruhiko Kuroda. He said that global outlook has brightened somewhat due to preliminary U.S.-China trade deal.

At the time of writing, the yield on the benchmark 10-year JGB note, which moves inversely to its price, rose nearly 1 basis point to 0.007 percent, the yield on the long-term 30-year climbed 1-1/2 basis points to 0.435 percent and the yield on short-term 2-year remained steady at -0.099 percent.

According to Reuters, Governor Kuroda after the policy decision the BoJ will debate monetary policy in December based on a view the economy is sustaining a moderate recovery, hinting that he saw no imminent need to ramp up stimulus.

The BoJ left interest rates unchanged on Thursday as most had anticipated and set a rather high bar for any easing. The Bank’s decision to leave its short-term policy rate unchanged at -0.1 percent was correctly anticipated by 33 out of 46 economists polled by Bloomberg, Capital Economics reported.

The Bank altered its forward guidance by noting that it “expects short-term and long-term interest rates to remain at their present level or lower for as long as it is necessary to pay close attention to the possibility that the momentum toward achieving the price stability target will be lost, the reported.

Meanwhile, the Nikkei 225 index traded -0.07 percent lower at 23,848.00 by 05:30GMT.