JGBs edge down as Japan set to lift coronavirus emergency

TOKYO, May 25 (Reuters) - Japanese government bond prices edged down on Monday, on mildly positive risk sentiment as the Japanese government looks set to end the state of emergency imposed to curb the spread of the coronavirus in Tokyo and remaining areas.

Japan's economy minister told reporters on Monday the government had received approval from key advisers to remove the state of emergency for all remaining regions, which account for more than a third of the country's GDP.

Investors also took note of a media report that the government is considering fresh stimulus worth 100 trillion yen ($930 billion), mostly comprising financial aid for companies, which could lead to a further increase in the issuance of government bonds.

Market reaction, however, was muted as it was not clear how the government plans to fund it and also due to wide-spread expectations that the Bank of Japan will increase bond buying to maintain the market's stability if needed.

The BOJ on Monday maintained the size of all of its JGB buying operations.

Benchmark 10-year JGB futures fell 0.10 point to 152.34.

In the cash bond market, the 10-year JGB yield rose 1 basis point to minus 0.010%, while the 20-year JGB yield rose 2.5 basis points to 0.340%.

The 30-year JGB yield rose 3 basis points to 0.475%.

The benchmark two- and five-year JGBs were not traded, as of late afternoon. (Reporting by Tokyo Markets Team, Editing by Sherry Jacob-Phillips)