imageTOKYO: Japanese government bonds rose on Monday, bolstered by the Bank of Japan's asset buying operations, as investors awaited the next session's sale of 10-year JGBs.

Weak stocks also added to the appeal of fixed-income assets. The Nikkei stock index ended down 0.3 percent.

The BOJ offered to buy 790 billion yen of JGBs in the one- to five-year zone and 400 billion yen of JGBs in the 10- to 40-year zone under its asset purchase programme.

The benchmark 10-year yield was down 2 basis points at minus 0.085 percent. On Tuesday, the Ministry of Finance will conduct an auction of 10-year JGBs, the first of the new fiscal year that began this month.

In the superlong zone, the 20-year JGB yield shed 2 basis points to 0.350 percent, while the 30-year JGB yield was down 1 basis point at 0.400 percent after earlier touching a record low of 0.395 percent.

June 10-year JGB futures added 0.21 point to end at 151.69.

Japanese companies' long-term inflation expectations weakened in March from three months ago, a BOJ survey showed on Monday, a sign that the central bank's January decision to adopt negative interest rates has so far failed to convince firms price rises will accelerate over time.

Copyright Reuters, 2016

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