Japan 40-year government bond yield rises 2.0 bps to 3.820%.

Sources say the Bank of Japan is considering keeping its current JGB purchase volume unchanged from the next fiscal year rather than continuing scheduled reductions. Policy board views are split between members prioritizing market calm and those pushing steady tapering to shrink the central bank's balance sheet. At the June meeting the BOJ will review the current taper program (running through next March) and set policy for FY2027 and beyond. Four people familiar with the bank's thinking said, given progress in shrinking its balance sheet and upcoming bond maturities that will lower holdings, internal sentiment has shifted toward pausing further tapering. The BOJ could abandon its practice of an annual taper plan and adopt an open-ended framework committing to monthly purchases of JPY 2.1 tln. Markets expect the BOJ to raise the short-term policy rate from 0.75% to 1% at next week’s meeting.

富时中国A50指数期货开涨0.06%。