Upon approval by parliament, Ueda is expected to succeed incumbent Haruhiko Kuroda when his term ends in April.
Benchmark 10-year JGB futures rose as much as 0.30 point to 146.60 in early trade. They were last up 0.21 point. "From what he has said so far, it sounds like he is a dove," said Takafumi Yamawaki, head of Japan rates research at J.P. Morgan Securities. "I don't think Ueda has the same stance as Kuroda but it is not clear whether Ueda would tweak the BOJ policy as the market expected. This could be a risk for short sellers, which is why futures rose today."
Investors renewed their attack on the BOJ's ultra-loose
interest rate stance, expecting the central bank to abolish its
yield curve control (YCC) policy after Ueda takes the helm in
April.
The five-year yield fell 0.5 basis point to
0.235%, after hitting 0.245%, its highest since Jan. 18, in the
previous session.
The 10-year JGBs have not traded yet and the yield was flat at 0.500%, after breaching the top end
of the BOJ's policy band for a second day in the previous
session.
The 20-year JGB yield fell 1.5 basis points to 1.285%. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)
