Yields Fall for Third Day in Japan as BOJ Starts Policy Meeting

Japan’s benchmark government bond yields slid for a third day as the central bank began a two-day policy meeting.

The 10-year yield continued its retreat from a six-month high, helped by demand from a Bank of Japan operation to buy debt with more than five years to maturity. Longer-term yields had risen since late July, when the monetary authority refrained from increasing bond purchases or deepening the negative deposit rate at its last policy gathering. The BOJ also announced a comprehensive review of its stimulus for the current meeting. The yield curve has steepened as investors bet the BOJ would reduce or otherwise limit purchases of the longest tenors.