JGBs Hold Steady Ahead of Central Bank Meetings

Japanese government bonds (JGBs) remained steady on Monday as markets prepared for key central bank meetings this week. The benchmark 10-year JGB yield decreased by 0.5 basis points to 2.980%.

The yields of the 40-year JGB, Japan's longest tenor, and the two-year JGB yield, which is most sensitive to BOJ policy rates, held steady at 4.10% and their respective levels. The five-year JGB yield also remained unchanged.

Market participants are focused on the Bank of Japan's policy meeting on September 17-18, where a rate hike by 25 basis points to 1.25% is widely expected, following hawkish signals from Governor Kazuo Ueda and firm inflation data.