TOKYO: Japanese government bond (JGB) prices rose on Monday, with 40-year bond yields falling to their lowest since mid-2016 after soft US payrolls data last week cemented expectations that the Federal Reserve would cut interest rates later this year.
The benchmark 10-year JGB yield shed one basis point to minus 0.130pc.
The 20-year yield dropped two basis points to 0.24pc, while the 40-year yield dipped 2.5 basis points to 0.415pc.
Yields on short-dated maturities were easier. The five-year yield dropped 0.5 basis point to minus 0.235pc.
Ten-year JGB futures gained 0.11 points to 153.54, with a trading volume of 45,883 lots by mid-afternoon trade.
US Treasury yields tumbled on Friday, with 10-year yields hitting their lowest since September 2017 after a much weaker-than-expected non-farm payrolls data, raising bets the Fed would lower interest rates.