JGB futures opened at 149.85 and slightly drifted higher to 149.89 ahead of the lunch break while Nikkei lost over 0.6%. In the second half, it was reported that the MOF sold Y2174.6 billion of 0.1% of 5-year bonds with a lowest price of 100.90, yielding -0.085% and a bid to cover of 4.259 compared to 3.664 seen for the last 5 year auction. After the lunch break, JGB futures returned to the session's low at 149.84 before rising to 149.91 subsequently. Overall, Nikkei closed at 19238.98 and lost 1.13% while 10 year yields closed at 0.0900%.
Earlier during the day, BoJ's Kuroda said that yield policy is aimed at reaching the 2% target as soon as possible as monetary policy is a crucial factor for CPI. Later, he added that free trade system is needed to keep Asia growing and that trade liberalization had become sluggish although it is unlikely that global trade will regain pre-crisis growth pace. WA