TOKYO: Japanese government bond prices held mostly firm on Friday with two-year yield hitting a record low and yields up to four years staying below zero on expectations of a bond shortage next week, ahead of a large redemption.
The two-year JGB yield fell 2.5 basis points to minus 0.040 percent, while five-year bonds maturing Sept 2018, for example, traded at minus 0.010 percent.
The 20-year JGB yield fell 0.5 basis point to 1.115 percent while the 30-year yield dipped 1.0 basis point to 1.320 percent.
Although US Treasuries dipped on the Federal Reserve's upbeat economic assessment, JGBs were well-supported because the Bank of Japan's bond buying has led to a scarcity of bonds.
Investors will have cash to put to work as a large amount of JGBs is due to mature on Monday. The 10-year sector was weaker than other maturities, with the 10-year yield ticking up 1.0 basis point to 0.355 percent .
The market showed no reaction to the Bank of Japan's decision to keep its policy on hold.
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