BOJ to conduct special JGB-buying operation as 10-year yield hits policy ceiling

By Kevin Buckland

TOKYO, Sept 27 (Reuters) - The Bank of Japan said it would conduct a special temporary purchase operation of Japanese government bonds on Tuesday, with the yield on the benchmark 10-year note brushing against the 0.25% policy ceiling for the first time in the past fortnight.

The BOJ will purchase debt with 10- to 25-year maturities worth 100 billion yen ($692.28 million).

The 10-year yield rose half-a-basis point to 0.25% as of 0128 GMT, a level not seen since Sept. 16. The central bank pins the yield at +/- 25 basis points around zero under its yield curve control policy.

Benchmark 10-year futures fell 0.28 points to 147.72, and earlier touched a three-month low of 147.62.

The yield on the 30-year JGB rose to 1.42% for the first time since September 2015, and the 20-year yield advanced to 1.03% for the first time since December 2015.

The five-year yield added 1 bp to 0.08%, a three-month high.

Two-year notes were yet to trade.

($1 = 144.4500 yen) (Reporting by Kevin Buckland; Editing by Sherry Jacob-Phillips)