JGBs gain on BOJ buying operation, investors take Sakurai comments in stride

TOKYO, Nov 27 (Reuters) – Japanese government bond prices rose on Wednesday after the Bank of Japan (BOJ) conducted a regular debt-purchasing operation for monetary policy.

BOJ board member Makoto Sakurai said on Wednesday the central bank would only consider expanding stimulus if overseas risks triggered a financial crisis, suggesting a very high bar to additional monetary easing.

However, the bond market took Sakurai’s comments in their stride and rose in line with a bullish rally in fixed income prices in Europe and the United States, which pushed down yields on all but the longest-dated tenor.

Benchmark 10-year JGB futures rose 0.19 point to 153.51, with a trading volume of 14,567 lots.

The 10-year JGB yield fell 1 basis point to minus 0.110%.

The 20-year JGB yield fell 2 basis points to 0.235%.

The 30-year JGB yield fell 2 basis points to 0.390%, while the 40-year JGB yield was unchanged at 0.440%.

The five-year yield fell 1 basis point to minus 0.210%.

At the short end of the yield curve, the two-year JGB yield fell 0.5 basis point to minus 0.195%. (Reporting by the Tokyo markets team, Editing by Sherry Jacob-Phillips)