Shorter dated bonds can also mean a much smaller risk of default.

Long- dated bonds led a U.S. debt rally and the yield curve flattened.

The reverse of that implies higher rates for riskier securities, including longer- dated bonds.

Yields move inversely to prices and inflation erodes the value of longer- dated bonds.

In that fund, Rieder has been trimming exposure to long- dated bonds.

Kuroda's comments came just after the BOJ reduced purchases of long- dated bonds this week.

But long- dated bonds are a different story, according to Rieder.

Celgene's longer- dated bonds rose, particularly for issues with the full amount borrowed still outstanding.

Attention is also focused on Spain and its sale of long- dated bonds on Thursday.

Short-term auctions last week had been successful but Thursday's sale was for longer- dated bonds.

Doing away with the rule would allow the BOJ to buy more longer- dated bonds.

This has kept yields on shorter- dated bonds issued by top-rated countries firmly below zero.

Longer- dated bonds are the biggest gainers when inflation is tame.

Longer- dated bonds are sensitive to inflation expectations as rising consumer prices can erode their value.

The notes now offer plumper yields and in general lack the interest-rate sensitivity of longer- dated bonds.

Their shorter- dated bonds, more sensitive to the risk of default, outperformed the rest of the curve.