TOKYO: Japanese government bond prices soared on Friday, with the benchmark 10-year yield edging near zero percent after Japanese share prices plunged on a rise in the yen, undermining any benefits from the Bank of Japan's negative interest rates.

The 10-year yield fell 3.0 basis points to 0.025 percent.

The five-year yield fell 3.5 basis points to minus 0.185 percent while the two-year yield fell to as low as minus 0.200 percent.

All of those yields were at record lows.

The 10-year JGB futures rose 0.48 point to 151.40.

The notable exception was 30-year bonds, which were capped by caution ahead of an auction of 30-year bonds on Tuesday.

JGB yields have been plunging since last Friday when the BOJ announced negative interest rates of 0.10 percent.

Short-term bond yields have fallen well below 0.10 percent as investors speculated the BOJ might cut rates further in the future.

Such speculation intensified as Japanese share prices fell below their prices before the BoJ's latest easing and the yen gained as the dollar dropped on retreating expectations of rate increases by the US Federal Reserve.

The Nikkei average declined for a fourth day, hitting two-week lows. The yen rose near its one-year peak hit last month.

Copyright Reuters, 2016