TOKYO May 19 Longer-dated Japanese government
bond prices gained on Friday, supported by a regular Bank of
Japan debt-buying operation that helped flatten the yield curve.
The benchmark 10-year JGB yield was flat at
0.040 percent after rising to as high as 0.045 percent earlier
in response to a rise in U.S. Treasury yields.
The 30-year bond yield, on the other hand,
fell half a basis point to 0.800 percent after the BOJ offered
to buy 300 billion yen ($2.69 billion) of longer-dated JGBs in
its regular bond-buying operation.
The yield curve flattened as a result, with the yield spread
between 10-year and 30-year JGBs at its tightest since April 25.
Treasury yields rose from one-month lows on Thursday as Wall
Street stocks recovered from Wednesday's dramatic drop, reducing
demand for safe-haven bonds.
($1 = 111.3700 yen)
(Reporting by the Tokyo markets team; Editing by Eric Meijer)