TOKYO, Feb 27 (Reuters) - Japanese government bond prices rose on Monday, with the five-year yield hitting a three-month low, on relief over the Bank of Japan's bond buying and caution on U.S. President Donald Trump's speech later in the week.
The BOJ bought 820 billion yen ($7.31 billion) of bonds maturing in more than one to five years on Monday.
It was a widely expected but still reassuring move after the central bank had shocked the market by abruptly skipping a purchase in that tenor last month.
The market drew support from gains in U.S. and European bonds on suspicions that Trump may underwhelm in Tuesday's speech to the congress, where many investors expect him to spell out his "phenomenal" tax-cut plans.
"The uncertainty on the BOJ was cleared while there's growing perception that it is not easy for Trump to carry out large tax cuts very quickly," said Tadashi Matsukawa, head of fixed income investment in Tokyo at PineBridge Investments.
The benchmark 10-year JGB yield fell 1.0 basis point to 0.050 percent, its lowest level in about a month.
The 20-year yield fell 2.5 basis points to a one-month low of 0.620 percent, while the 30-year dropped 3.5 basis points to 0.810 percent.
The BOJ's buying underpinned shorter paper, with the five-year yield falling to minus 0.145 percent, falling below its January trough to mark its lowest level since mid-November.
The price of 10-year JGB futures rose 0.14 point to 140.54 by 0435 GMT.
The BOJ's bond buying plan for next month, due on Tuesday, is the next key focus for the market, market players said. ($1 = 112.19 yen) (Reporting by Tokyo Markets Team; Editing by Gopakumar Warrier)