TOKYO: Japanese government bond yields declined on Thursday - particularly in the longest maturities, flattening the curve - as they tracked a retreat in US yields from multi-year highs. The 30-year JGB yield fell 4 basis points to 0.940%, as of 0550 GMT, while the 40-year yield slid 4.5 basis points to 1.025%.
The five-year yield slipped 0.5 basis point to 0.025%, although the 10-year yield was flat at 0.235%.
Benchmark 10-year JGB futures rose 0.2 point to 149.48.
US 10-year Treasury yields declined to 2.6825% in Tokyo trading on Thursday, retreating from December 2018 highs of 2.8360% hit on Tuesday, as investors unwound positions amid a growing belief that inflation may have peaked.
“US yields have already priced in a lot of rate hikes for this year and so are calming down now, which seems to be bringing a sense of relief to markets,” said Makoto Suzuki, a senior bond strategist at Okasan Securities.
The 20-year JGB yield fell 2.5 basis points to 0.740%, underperforming other superlong bonds as an auction of the securities saw tepid demand.
Going against the trend, the two-year JGB saw yields edge 0.5 basis point higher to minus 0.065%.