TOKYO, Sept 15 (Reuters) - Japanese government bond prices gained on Friday following a regular debt-buying operation by the Bank of Japan.
The benchmark 10-year yield declined 1 basis point to 0.025 percent, pulling away from a three-week high of 0.040 percent set on Thursday.
The 10-year yield was still some distance from a 10-month trough of minus 0.015 percent plumbed last week when concerns over North Korea and Hurricane Irma had taken a toll on broader risk sentiment.
The five-year yield fell 1.5 basis points to minus 0.120 percent.
Pyongyang, in its latest challenge, launched a ballistic missile that flew over northern Japan early on Friday but financial markets have taken the launch in their stride.
The Nikkei average was up 0.5 percent and the dollar is steady versus the yen.
The BOJ bought 880 billion yen ($7.97 billion) of one- to 40-year JGBs on Friday as a part of its regular debt-buying scheme. ($1 = 110.3600 yen) (Reporting by the Tokyo markets team; Editing by Eric Meijer)