30-year JGB yield falls to 2 1/2-year low on BoJ buying hopes

TOKYO: The yield on 30-year Japanese government bonds dropped 6.0 basis points on the day to hit a 2 1/2-year low of 1.705 percent on Monday, reflecting expectations that the Bank of Japan may buy more 30-year bonds to boost monetary expansion.

Japanese investors are snatching up long-dated bonds ahead of their annual book-closing at the end of this month, after having being underweight on these maturities for fear that Prime Minister's Shinzo Abe's loose monetary policy plan might spark future inflation.