TOKYO Feb 24 Japanese government bond prices
gained on Friday, helped by a regular Bank of Japan buying
operation, with the yield curve at its flattest in three weeks
as the market tracked a recent decline in global debt yields.
The benchmark 10-year JGB yield fell a basis
point to 0.065 percent, its lowest in a month.
The 10-year yield has spiked to a one-year peak of 0.150
percent at the start of February as doubts mounted towards the
Bank of Japan's commitment to its massive debt-buying scheme.
But the yield has since declined as the central bank has
helped soothe nerves by conveying to the market that it remains
committed to JGB buying, at least for the foreseeable future.
Super long JGBs, already on a bullish footing after
Thursday's 20-year auction attracted strong investor demand,
outperformed as the BOJ conducted a regular JGB buying operation
in the zone.
The 30-year yield fell 4 basis points to
The yield curve flattened as a result, with the
10-year/30-year yield spread at its tightest in three weeks.
U.S. Treasury debt yields fell on Thursday as investors
fretted about the lack of clarity in the Trump administration's
In Europe, recent debt market volatility eased slightly,
with French government bond yields pulling back after rising
earlier in the week. French yields fell as a new centrist pact
in the country's presidential election race eased market
concerns about far-rightist Marine Le Pen gaining ground.
(Reporting by the Tokyo markets team; Editing by Jacqueline