TOKYO Dec 30 Japanese government bond yields
held near three-week lows on Friday, anchored down after a
well-received debt auction took U.S. Treasury yields down across
the curve overnight.
The benchmark 10-year JGB yield was unchanged
at 0.040 percent, near a three-week trough of 0.035 percent
touched the previous day.
The JGB market also drew support from an ebb in investor
risk appetite with Tokyo's Nikkei retreating to its
lowest in three weeks.
The bonds did not make much headway, however, as many
investors are seen to have already squared their positions
before the year's end, limiting movements in the market.
The 10-year JGB yield was on track for a decline of about 20
basis points on the year.
The yield fell below zero earlier in the year under the Bank
of Japan's negative interest rates policy, touching a record low
of minus 0.300 percent in July amid the turmoil in global
markets following Britain's Brexit vote.
But it has since climbed out of negative territory as the
BOJ did not boost its already aggressive bond buying, eventually
opting for a yield curve control scheme under which it aims to
keep the benchmark yield around zero percent.
JGB yields have also felt the tug from the surge in Treasury
yields that took place after the U.S. elections in November.
(Reporting by the Tokyo markets team; Editing by Kim Coghill)