JGBs inch higher as govt trims next year’s planned…

TOKYO, Dec 22 (Reuters) – Japanese government bonds edged higher on Friday, bolstered by news that the Japanese government will pare its debt issuance next year to the smallest total amount in nine years.

The benchmark 10-year cash JGB yield inched down half a basis point to 0.050 percent, while 10-year JGB futures ended up 0.08 point at 150.78.

In the superlong zone, the 20-year yield was half a basis point lower at 0.570 percent, while the 30-year yield was flat at 0.815 percent.

The Ministry of Finance said on Friday that it will trim issuance of almost all maturities of JGBs in the next fiscal year beginning April 1.

The announced amount was in line with a Reuters report on Monday, and was slightly bigger than many investors had expected.

The ministry will cut the offer amounts of 40-, 30-, 10-, two-year JGBs, and one-year treasury discount bills, by 100 billion yen ($882.30 million) per auction. It will also cut the five-year JGB offer amounts per auction by 200 billion yen.

It kept issuance amounts of popular 20-year JGBs, as well as those of inflation-linked bonds, intact. ($1 = 113.3400 yen) (Reporting by Tokyo markets team; Editing by Sunil Nair)

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