JGBs inch down ahead of BOJ's bond-buying plan

TOKYO, June 26 (Reuters) – Japanese government bond prices edged lower on Friday as investors refrained from taking big positions ahead of the Bank of Japan’s (BOJ) monthly bond operation plans for July, which will be announced next week.

Benchmark 10-year JGB futures gained 0.04 point to 152.14, with a trading volume of 11,559 lots, while the 10-year JGB yield inched down half-a-basis point to 0.005%.

Market participants cautiously awaited the Bank of Japan’s announcement of bond operation schedule next Tuesday, with some speculating that yields could rise if they deemed the central bank’s plans to be insufficient.

Separately, BOJ Governor Haruhiko Kuroda said at an online seminar on Friday that he saw no immediate need to lower the entire yield curve.

The two-year JGB yield added half-a-basis point to minus 0.145%, while the five-year yield dipped half-a-basis point to minus 0.110%.

In the superlong zone, the 20-year JGB yield rose half-a-basis point to 0.395%, while the 30-year JGB yield and the 40-year JGB yield remained unchanged at 0.580% and 0.615%, respectively.

The BOJ purchased 1-3 and 3-5 year maturities in its operation on Friday, keeping the size of its buying unchanged from previous operations at 340 billion yen and 320 billion yen, respectively. (Reporting by Tokyo Markets Team, Editing by Sherry Jacob-Phillips)

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