Japan bonds steady ahead of BOJ decision; strong auction lends support

What happened: Japanese government bonds were steady a day before the Bank of Japan's policy decision, with strong demand at a 2-year note auction providing support. Key numbers: 2-year JGB yield eased half a basis point to 1.895 per cent; bid-to-cover ratio rose to 4.03 from 3.89; 10-year yield added 0.5 bp to 2.83 per cent; 5-year flat at 2.265 per cent; 30-year up half a basis point Why it matters: A Mizuho analyst said the market read the Fed as less hawkish than expected, and that the need for the BOJ to raise rates at a high pace seems low, which should support the yen bond market.

Japanese government bonds were steady a day before the Bank of Japan's policy decision, with strong demand at a 2-year note auction providing support.

A Mizuho analyst said the market read the Fed as less hawkish than expected, and that the need for the BOJ to raise rates at a high pace seems low, which should support the yen bond market.