"Investors are trimming their positions after yesterday's rally and ahead of the long weekend," said RuiXue Xu, a fixed income strategist at RBS Securities. Japanese markets will be closed on Monday for a national holiday.

"There isn't much in terms of data or events today and players are squaring positions for a shortened week next week which includes a 20-year auction."

September 10-year JGB futures dipped 0.05 point to 141.70 after hitting an eight-month high of 141.77 the previous day. Futures were still on track to end the week more than a full point higher, which would mark their largest weekly climb since November 2009.

JGBs were boosted this week by the continuing debt crisis in Europe -- Moody's cut Ireland's credit rating to junk status and fears arose that the debt malaise could spread to Italy -- and by Federal Reserve Chairman Ben Bernanke's suggestion that the US central bank could ease monetary policy further if economic recovery stumbled.

The benchmark 10-year yield climbed 1.5 basis points to 1.085 percent but remained within striking distance of 1.070 percent, an eight-month low hit the previous day.

Japan's Ministry of Finance will offer 20-year JGBs next week, with some market players worried that yields may have dropped too low to attract solid investor demand.

An auction of five-year JGBs on Thursday met decent appetite from cash-rich domestic investors such as banks concerned that this week's surge in the yen could hurt the Japanese economy.

Copyright Reuters, 2011