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TOKYO: Japanese government bond prices fell on Friday, surrendering earlier gains, after Bank of Japan Governor Haruhiko Kuroda mentioned the possibility of an exit from ultra-easy monetary policy.

Kuroda told the Japanese parliament on Friday that the BOJ would consider ending its ultra-loose monetary policy if inflation hits its target during the year ending in March 2020.

The BOJ's easing, entailing a yield curve control scheme backed by massive debt buying operations, has held down long-term JGB rates near zero percent.

The 30-year JGB yield rose 1 basis point to 0.760 percent.

The benchmark 10-year JGB yield was 1 basis point higher at 0.060 percent, after rising briefly to 0.080 percent.

The 10-year yield had declined to 0.040 percent earlier on Friday after US President Donald Trump's plan to impose tariffs on steel and aluminium unnerved the global equity market and enhanced demand for safe havens.

 

Copyright Reuters, 2018

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