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JGBs nearly flat ahead of September consumer inflation data; BoJ policy meeting looms

The Japanese government bonds traded nearly flat Wednesday as investors await the September consumer inflation data in an attempt to estimate the BoJ's most likely policy step.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around -0.06 percent mark, the yield on long-term 30-year Treasury remained steady at 0.48 percent and the yield on short-term 2-year note stood flat at -0.24 percent by 06:30 GMT.

The BOJ is expected to maintain its minus 0.1 percent short-term interest rate target at its two-day meeting ending on Tuesday, next week. In September, the BOJ shifted the focus of its monetary policy framework to controlling the yield curve by actively guiding the 10-year yield around zero, Reuters reported.

According to a Bloomberg survey of economists showed majority expect no change from the bank at this meeting. Around 35 percent think that Kuroda's BOJ is done with adding to stimulus. Only 2 of the 43 respondents looking for more easing at the meeting, both forecast a cut in the negative interest rate on some commercial bank reserves to -0.2 percent.

Lastly, investors will remain keen to focus on the series of upcoming economic data, highlighted by household spending, National CPI, unemployment rate, BoJ’s own CPI number and 10-year bond auction.

Meanwhile, the benchmark Nikkei 225 closed up 0.15 percent at 17,391.84 and the broader Topix index closed 0.39 percent higher to 1,382.70 points.

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