Ten-year JGB yield slips to two-month low of 0.785 percent

TOKYO: The yield on benchmark 10-year Japanese government bonds fell to a two-month low on Monday, as sagging stocks boosted the appeal of fixed-income assets.

The 10-year yield shed 1.5 basis points to 0.785 percent, its lowest since May 14, pushing through the bottom of the 0.80 percent to 0.90 percent range in which it had traded since late May.

Japanese stocks erased earlier gains as an initial rally sparked by the big election win of Prime Minister Shinzo Abe's bloc in upper house elections on Sunday gave way to profit taking after the yen bounced off lows.

Ten-year JGB futures were last at a session high of 143.72, up 0.28 point, as the Nikkei stock average sagged 0.3 percent.