TOKYO: Japanese government bonds rallied on Friday with 10- and 20-year yields notching fresh record lows after strong results at the Bank of Japan's bond-buying operations.
The 10-year JGB yield fell 4.5 basis points to minus 0.100 percent, after earlier falling as low as minus 0.135 percent.
The move was the first time since 1980 that the 10-year yield has fallen below the central bank's policy rate, which is now at minus 0.10 percent.
The 20-year yield skidded 8.5 basis points to 0.345 percent , after earlier marking a record low of 0.290 percent.
The BOJ offered to buy 400 billion yen ($3.60 billion) in the 1-year to 3-year zone, 420 billion yen in the 3-year to 5-year zone, 260 billion yen in the 10-year to 25-year zone, and 180 billion yen of JGBs maturing in over 25 years, under its massive asset buying programme. The results of the operation showed shrinking bid-to-cover ratios, underscoring tight supply conditions in the market.
The benchmark 10-year JGB futures ended up 0.44 point at 151.71 after rising as high as 152.05 shortly after opening of the afternoon session.
Minutes of the Bank of Japan's January meeting released earlier on Friday showed that policymakers debated the option of once again expanding its massive asset purchase programme before eventually adopting the negative interest rate plan they settled on.
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