JGBs remain narrowly mixed after BoJ keeps interest rate steady, 10-year yield target at around zero pct

Japanese government bonds remained narrowly mixed on the last trading day of the week after the Bank of Japan (BoJ) held its benchmark interest rate steady at its momentary policy meeting concluded early today, with the 10-year yield target maintained at around zero percent.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, remained tad lower at 0.03 percent, the yield on the long-term 30-year note slid nearly 1 basis point to 0.71 percent and the yield on short-term 2-year steadied at -0.13 percent by 05:00 GMT.

The BoJ maintained its ultra-loose monetary policy on Friday and downgraded its view on inflation, signalling that it will lag well behind its U.S. and European peers in rolling back crisis-era stimulus. As widely expected, the central bank kept its short-term interest rate target at minus 0.1 percent and a pledge to guide 10-year government bond yields around zero percent.

The move contrasts with the European Central Bank's decision to end its asset-purchase program this year and the U.S. Federal Reserve's steady rate increases, which signaled a break from policies deployed to battle the 2007-2009 financial crisis.

Meanwhile, the Nikkei 225 index traded 0.36 percent higher at 22,817.00 by 05:10 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -26.47 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest