Japanese government bond futures gained and yields fell as the Bank of Japan confirmed at its latest meeting that it would maintain its ultra-easy monetary policy, as had been widely expected by the market.

Benchmark 10-year JGB futures rose 0.11 point to 149.3, with a trading volume of 7,732 lots. The 10-year JGB yield fell 1 basis point to 0.230%.

The results of the BOJ’s policy meeting were described as “in line with expectations, no surprises” by a market participant at a domestic asset management firm.

The BOJ maintained its -0.1% target for short-term rates and nearly zero for 10-year bond yields.

JGB yields rise as investors seek riskier assets

The central bank also raised its core consumer inflation forecast for the current fiscal year ending in March 2023 from 1.9% to 2.3%.

The two-year JGB yield was flat at -0.080%, and the five-year yield fell 1 basis point to 0.015%.

The 20-year JGB yield fell 2.5 basis points to 0.890%, and the 30-year JGB yield fell 2 basis points to 1.250%.