TOKYO: Japanese government bond prices dipped on Friday, pushing the 10-year yield off a one-year low hit the previous day, as worries about Italy eased somewhat after an Italian debt auction went better than feared and the country moved closer to a unity government.
Ten-year JGB futures dipped 0.03 point to 142.89 while the 10-year bond yield rose 1.0 basis point to 0.970 percent, off a one-year low of 0.960 percent struck on Thursday.
Investors are becoming cautious about chasing JGBs higher, remembering that the fall in the 10-year yield to a seven-year low of 0.82 percent last November was followed by four months of a painful bear market.
The longer end of the market continued to benefit from relief after Thursday's 40-year JGB auction drew strong demand.
The 30-year bond yield fell 1.5 basis points to 1.910 percent, while the 20-year bond yield fell 0.5 basis point to 1.710 percent.
The spread between 10- and 30-year yields tightened to 94 basis points from eight-month high of 99 basis points, hit before the auction.
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