JGB yields fall as traders brace for landmark BOJ shift

Japanese government bond yields declined on Monday, ahead of a key Bank of Japan policy decision the following day when the central bank is widely expected to exit ultra-easy stimulus. The Nikkei newspaper reported on Saturday that the BOJ would exit negative short-term interest rate policy (NIRP) on Tuesday, following substantial pay hikes by big firms in this year's wage negotiations. Reuters reported that the central bank was likely to remove its long-term yield curve control policy (YCC) at the same time as ending NIRP.